Online Financial Scams

Every day business owners are online conducting business and financial transactions. The Nova Scotia RCMP Commercial Crime Section recently shared warnings to businesses to use caution when sending or receiving account or payment information over email. In particular, they have noticed an increase in reported cases of business emails being hacked to redirect electronic payments.

Business email systems are being hacked by scammers. They are intercepting emails that contain billing or payment instructions and then change the billing information and resend the altered email to the other company causing future payments to be sent directly to the fraudster. According to the Nova Scotia RCMP, "Companies across the Maritimes have been victimized, including a business in Nova Scotia that was defrauded $100,000."

In an article published by Halifax Today on October 27th, Cpl Laurie Haines of the Nova Scotia RCMP Commercial Crime Section recommended businesses do the following: 

1. Keep computer security up to date with anti-virus and anti-spyware software, and a good firewall. Only buy a computer and anti-virus software from a reputable source.
2. Regularly use your security software to run a virus check.
3. Secure your networks and devices, and avoid using public computers or WiFi Hotspots to access or provide personal and security information.
4. Choose passwords and PINs that would be difficult for others to guess, and update them regularly. Do not save the passwords on your phone or computer.
5. Do not open attachments or click on links in emails or social media messages received from strangers.
6. Be wary of apps and downloads from unfamiliar websites. They may install harmful programs without you knowing.
7. Do not use software that auto-completes online forms.
8. Prohibit personal use of company emails.
9. Educate your employees on the importance of cybersecurity by sharing this information with them.

If your company is doing business online, Crime insurance has levels of coverages and elements available that may cover against online financial scams, including:

• Funds Transfer Fraud Coverage
• Money Orders and Counterfeit Currency Coverage

Find out more and have all your questions answered  by contacting OTC Insurance.