Email Fraud: The Hidden Threat to Your Business

Email fraud is no longer obvious. Nearly 90% of cyberattacks start in inboxes, and the average loss per incident exceeds $120,000. For businesses handling payroll, vendor payments, and banking details, that’s a risk you can’t ignore. Here’s how to spot the warning signs and protect your team.

Common Indicators of Email Fraud

1. Sudden Direct Deposit Changes

If you receive an email asking to update an employee’s banking details—especially to unfamiliar accounts—pause before acting.

• Verify verbally: Call the employee directly to confirm the request.

• Don’t reply to the email: Wait until you’ve confirmed through a secure channel before responding.

2. New Contractors Requesting Big Payments

Fraudsters may pose as contractors and push for urgent, high-dollar payments.

• Check your records: Validate whether the contractor exists in your system.

• Confirm internally: Speak with the hiring manager before processing any payment.

3. Suspicious Email Addresses

Spoofed emails often look legitimate at first glance.

• Inspect carefully: Compare the sender’s address to previous communications.

• Spot subtle changes: Extra characters or misspellings are common red flags.

• Watch tone and urgency: Pushy language or requests to bypass normal controls should raise alarms.

Your Best Defense: Pick Up the Phone

When something feels off, a quick call can prevent a major loss. Verbal verification remains one of the most effective ways to stop payroll and vendor fraud in its tracks.

Smart Habits to Reduce Risk

Email accounts are prime targets for hackers because of the sensitive data they hold.

Protect yours with these practices:

• Strong passwords: Use complex phrases (12+ characters) and update them regularly.

• Enable 2FA: Add an extra layer of security with two-factor authentication.

• Stay alert for phishing: Verify senders and avoid clicking unknown links or attachments.

• Update software: Keep systems and antivirus tools current to patch vulnerabilities.

• Monitor activity: Check for unauthorized changes or unfamiliar logins and act fast if you spot anything unusual.

Takeaways

Fraud doesn’t take holidays. By staying vigilant and enforcing verification protocols, you can safeguard your business against year-end scams and keep those protections in place year-round.