Beating the fraudsters Print
Written by Gary Howes   
Monday, 18 May 2009 15:49
Fraud costs British business £72 billion a year and now because of the current economic climate it is set to rise. As the recession bites, it is now more important than ever for businesses, however small, to take steps to safeguard confidential data in order to prevent fraud.


Jim Watson, the managing director of Shred Easy, discusses the increase in fraud during the credit crunch and how you can protect your business.

From telegraphic transfer to identity fraud criminals are becoming more sophisticated. Fraud can cost your business money, damage your reputation in the market place, affect staff morale and subsequently make recruitment difficult. To prevent this you should ensure that financial and personal information is filed securely and then destroyed.
Secure

Customers of small and large businesses must have absolute confidence in the company’s ability to handle confidential information securely and discreetly.  

It is not merely a question of compliance with Data Protection legislation. Public awareness of identity theft is at the highest level ever.  At the most basic level, customers of every description need to be reassured that the information that they willingly provide to businesses will be handled responsibly.

According to a new report by ACPO (Association of Chief Police Officers) weaknesses in corporate information security is costing the UK economy a minimum of £20 billion a year. The fact that the authorities are progressing initiatives such as Data Protection Day and National Fraud Week reveal how high on the agenda this issue is.

In business and commerce, controversial events like Andy Burnham, the Culture Secretary, leaving a case behind on a train from the North at Euston Station containing confidential documents and Bob Quick, the senior counter-terrorism officer, mistakenly revealing a secret terrorism document to photographers as he arrived at Downing Street, have sent shockwaves that have reverberated around the country.  

It follows that businesses must not only take every possible step to demonstrate that security of confidential information is a major priority.

Destruction


The systematic, successful and responsible collection and destruction of confidential documents and data is one of the most straightforward and obvious ways this can be achieved. Fortunately, it is neither a prohibitively costly, difficult nor time-consuming step to take.  

Education


Staff must be trained to be able to give customers an absolute assurance that the sort of leaks of information and data that have plagued government departments and ministries in recent years just cannot happen in modern business.

Hardly a day goes by without the question of identity fraud being raised in the media. Members of the pubic know that every time they surrender personal information, account details, card numbers, PINs and security codes they are exposing themselves to the risk of fraudulent use of their finances.    

Recycle


The storage, collection, destruction and recycling of materials isn’t just about paper. IT equipment such as hard drives and memory sticks are also more important than ever. Staff must be trained that electronic and digital records should also be securely stored, collected, completely destroyed, transported and responsibly recycled. BT recently sponsored  

During 2009 businesses will take a closer look at their internal processes of dealing with confidential data. How they secure confidential data and the way they organise on-site destruction and transportation of material will become ever more important. Staff need to be trained on how to implement slicker processes to deal with sensitive information quickly in an eco-friendly way in full view of instructing or inspecting officials, when necessary.  

Tips to prevent fraud


Businesses are risking millions by having no confidential data policy in place. Companies need to protect themselves now to weather the storm. Here are some tips about how to safeguard your business:

1)    Create a confidential data policy – if you don’t have one already you are already in the high risk category for being a victim of data theft.
2)    Store data safely – don’t assume that bagging it up is the end of the matter. Criminals have rich pickings outside business premises where confidential data has been poorly disposed.
3)    Destroy data properly – shred all confidential data and arrange for a professional company to help store, collect and securely destroy information. A number of document destruction companies offer approved on-site, cross cut shredding. Ensure you know where the data is heading.
4)    Check identities – use credit reference agencies to verify the identity of business customers, suppliers and clients.
5)    Secure your accounts – don’t allow details of your business banking to escape into the public domain. Thieves are well adept at impersonating signatures.
6)    Inform staff – train staff on how to deal with confidential data properly and monitor their behaviour. Most business fraud is committed by people within the business.  
7)    Keep post safe – theft of post is a major issue for businesses. Scammers may try to redirect your mail without your knowledge.  
8)    Restrict key documents – don’t allow staff to have full access to all your company documents. This applies to paper and digital data.
9)    Use anti virus software – businesses still get fleeced by online scammers. Installing credible anti-virus software is necessary to combat this threat.
10)    Beware of carrying large amounts of confidential data on laptops, data sticks or mobile devices such as Blackberry’s and iPhones. These small portable gadgets are magnets for thieves who can exploit your confidential information.
Last Updated ( Tuesday, 19 May 2009 15:57 )
 
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