Fraudsters can appear legitimate by impersonating real businesses. Does your company have a vetting process in place when onboarding new customers or suppliers? What vulnerabilities does your company have in your procurement process? Does your company have reputational risk?
A worthwhile repost, albeit one that includes a pitch on one of their software products, is an article from Thomson Reuters, “Know your vendor – 5 best practices for your company”, which was posted in 2021, to remind us of the importance of conducting vendor due diligence, automating processes that are equipped with alert capability on suspicious activities, prioritizing enhanced due diligence for higher risk vendors (and customers), and mitigating risks with adverse media and public records screening.
Remember the best practice your company followed in imposing a waiting period to ensure a check cleared prior to commencing an order for a customer? Consider the same period in order to ensure that digital payments have cleared and cannot be pulled back prior to fulfilling customer orders.
