Cross-Border Fraud Requires Extra Attention from Credit Managers.
Fraud knows no bounds, which is why researchers have broadened their scope to cross-border fraud detection only to find cybercriminals using similar tactics to those in the U.S. One such example is business email compromise (BEC), where cybercriminals deceive their targets by gaining their trust for the purpose of financial gain. After establishing a "business relationship" with the victim, the fraudster is able to convince the victim to complete a business transaction--often via wire transfer--tricking the business into a fraudulent transaction.
CEO and Managing Partner at Louisiana-based Innovative Risk Consultants Ryan Thomas said in today's business world, everyone is globally connected, whether it's through telephone, email or social media. Although beneficial, this connection also opens up businesses to electronic forms of fraud that can occur through wire transfers, ACH, email accounts or social media.
"It's about knowing your customer and it's much harder to know your international customer versus your national customer," said Thomas, who spoke at NACM's 123rd annual Credit Congress in Colorado in May.
"If you're an international business, you're going beyond the FBI and Homeland Security and relying on other countries to supply the cybercrime support," Thomas said. "Credit managers are at the forefront of protecting their company's bottom line while conducting business across borders."