6 common challenges you will face when dealing with business frauds

There are many big challenges business owners must face while taking care of their online business – but lets take a look at 6 of the most common challenges.

Handling too many transactions with a small fraud team

• Being able to address emerging fraud trends quickly 
• Defending chargebacks

Of course, this can significantly impact fraud rates, and usually, if frauds aren’t addressed quickly enough, they can result in many other issues. Moreover, if your fraud team struggles to address issues, your best bet is to outsource fraud and abuse prevention solutions to a trusted third party. 

Fraud prevention in banks

Fraudsters would love to attack users with financial information. Bank fraud prevention is one of the biggest challenges financial organizations have to go through. In this case, every financial institution must fight against complex fraud attacks continuously changing. Nevertheless, here are some of the biggest fraud challenges for banks: 

• Customer onboarding: Due to regulations by Anti-money laundering (AML) and Know your customer (KYC), it’s quite a risk for banks to contribute to digital onboarding. They are legal requirements that request you to confirm user identities to ensure they won’t commit financial crimes. One common method employed by banks to comply with AML and KYC regulations is implementing a robust customer screening process, which often involves conducting thorough PEP screenings. These screenings aim to identify individuals with potential political connections or high-risk profiles.

• Credit card fraud: Banks should be well aware of any fraud committed regarding transactions or when the withdrawal occurs. However, spotting patterns have limited exposure only by seeing the amount, currency, and category.

• Account protection: An account takeover might happen when an online fraudster steals sensitive information such as the log-in details of a user. However, one of the most common issues includes that banks will identify and block fraudulent attacks. Still, the bad part is that fraudsters will take advantage and try to find new ways to hack their way into sensitive information. In other words, it’s a continuous fight! 

Above all, many fraud scenarios occur, and no matter how well prepared banks can be, there will always be ways in which fraudsters will launch an attack. Here are some more fraud scenarios that occur: 

• Account opening fraud: Includes stolen identities for obtaining credit cards or fraudsters opening accounts and acting like real customers. 

• Account takeovers: Online attackers who overtake stolen accounts can start to spend the money in the account and even change all the credentials to act like legit users. 

• Fraudulent fund transfers: Occurs when online attackers will use an emulator or cloned app to make bank transfers. This is a standard method used for stealing money from accounts. 

Identifying warning signs from online attackers

Even though online attackers have used the same methods to commit fraud for several years, it’s vital to be aware of warning signs of online theft and financial fraud to protect your business and avoid letting data fall into the wrong hands. 

Whenever online attacks try to hack into your sensitive information, here are some of the most common methods they’ll use to do so: 

• Links or ads: You might see spammy links or ads that ask you to click on them so that they can get support, but don’t be fooled by these tricks. You may receive these links by email or by downloading a file you shouldn’t. 

• Phone calls: Online attackers might make anonymous calls and lie to you that they are a legit company. They can fool you into offering fake opportunities and gathering your personal information. Your best bet is to tell them you are in a rush or to send any important information to your email so you can further identify what they are trying to do. 

• Emails: A standard method online attacks will use for fraud. The most common type of email is sending fake job openings, fake links, or any other attachment containing malware. Gmail and Outlook will usually be smart at identifying these, but I don’t think they can save you every time, so you need to watch out. 

• Pop-ups: Random pop-up messages can seem like you made a mistake or might be telling you that you won something; the last thing you want to do is to click on it. It may be a virus in disguise, asking for your sensitive information. A standard pop-up message informs you that you won a prize and will ask for your information to send you the prize, but avoid believing in these pop-up messages. 

Not taking advantage of ML and AI

Some fraud teams are taking advantage of making use of machine learning (ML) and Artificial Intelligence (AI). However, simultaneously, many fraud teams aren’t taking advantage of this. Nevertheless, it’s pretty tricky for human beings to do everything on their own, and while AI can work without taking breaks, humans can’t do this, unfortunately.

With the help of ML models, anti-laundering capabilities have increased. Thus, it hasn’t only strengthened the protection we receive against online fraud but is also supporting our anti-fraud strategies. However, according to a recent study, only 13% of organizations worldwide are using AI and ML capabilities to fight fraud!

Internal fraud

The world isn’t perfect, so before you allow anyone in your team to gain access to sensitive information, you must be sure you trust them enough. Sadly, that isn’t always the case, so you must take action to keep an eye out for employee theft and internal fraud! Here are a few steps you can overlook: 

• Employees who work too many hours: There’s nothing terrible about working too many hours, but sometimes, some employees might do it to take advantage of you. Internal frauds can happen while no other team member is around, so if you find some of your employees coming in early, working on holidays, or staying late, there’s something to be curious about. 

• Employee burnout/high-stress levels: Have you realized one of your employees is stressed out? You never know what the reason may be. It might be due to your employees having something to hide! It’s always important to investigate further. 

• Living beyond their standards: This can’t always account for internal fraud but does take part in it. For example, identify any employees coming the next day with an expensive car, or clothing, or telling you about a costly vacation they are going to. It may be something to investigate about. Impulsive purchases can always be fraudulent, so it’s best to watch before something even bigger happens! 

Unprepared employees

When fraud occurs, nobody will inform you of an attack before it happens. Thus, the biggest issue amongst organizations is how unprepared they are when an attack does happen. In fact, according to a study, more than 70% of organizations claimed to be unprepared for an online attack. 

Above all, it’s more important than ever to teach your employees how to prevent fraud and immediately report suspicious behaviors. Your employees should be your first line of defense against fraud, which is excellent for real-time fraud identification. Try to hold regular meetings on how you can incorporate new ways of fighting fraud. Even if there are new hirings, ensure that you teach them how to be well aware of fraudulent activities. 

Alternatively, you can consider using a dark web scanner to identify if any site on the web is using your information for marketing purposes. Employees can learn how to use this and continuously monitor if this occurs or not.

Conclusion

These are six big challenges that organizations face when it comes to business fraud. Fraud is something we can’t ever stop, and the worst part is that it may come unexpectedly. You never know when it can happen and why it happens. 

Moreover, there are too many challenges organizations face and as statistics showed, the majority of organizations aren’t prepared at any level to face fraud. The worst part is that when fraud hits your organization, it can damage your reputation and cause too many issues that will never allow your organization to be the same. Therefore, it’s best to prepare for it before it hits you.

Why you should consider a career in the automotive industry?

There are many reasons to consider a career in the automotive industry, some of which include:

Changing the world

First, you should know that a career in the automotive industry is quite rewarding. With the help of your colleagues and partners, you will directly impact the lives of other people. This is because cars have become a necessity today and will remain a part of modern culture.

It will fill you with satisfaction and pride when you see a car you have helped create on a show stand or on the open road.

As of now, we are right in the middle of an ever-changing global ecosystem. Automotive technologies are being developed right in front of our eyes. With the right career, you will be able to influence future cars.

Become part of a team

When it comes to mastering a career in the automotive industry, you need to possess several important key skills. However, the most important is good teamwork; you need to play a significant role in any team if you want to deliver the results successfully.

In most automotive companies, you need to earn the respect of your team members. Hence, clear communication is a must, especially when you need to make fast decisions or articulate problems.

Job security

No matter which place you’ll reside in the future, the automotive industry will always be around. There will always be automobiles, trucks, pickups, and cars zooming past you on the highways or the streets. Therefore, you can rest assured knowing that you will always have a business or a job in the automotive industry.

Versatility

If you are looking for versatility, you can consider a career in the automotive industry. If you do not want to sell cars, the industry offers a wide range of areas you can focus on. For instance, if you like tinkering with cars, you can open your own repair garage or work as a mechanic for someone else. Or, you could start working at an established car manufacturing company and build a career in building or assembling cars.

Another career choice you have is opening a car showroom. If there are already too many showrooms in your area, you can start your business in another city or town.

You need to start exploring the available options, especially if you want to do it professionally. There have been many people employed in the automotive sector for years; however, it did not begin as a dream. Most of these individuals kept working hard and improving their skills to become what they are today.

There are many interesting careers in the automotive industry, like showroom manager, repair shop owner, service technician, paint technician, machinist, mechanical engineer, etc.

Personal and career growth

Since the automotive industry greatly depends on technology, there will always be changes. When it comes to building your career, you will have the opportunity to keep learning, improving, and growing. There are various training programs and workshops that you can check. You can even opt for designated schools.

The automotive industry is such that there is always room for growth, particularly if you are dedicated, hard-working, and highly skilled. As you move ahead in your professional journey, you will keep discovering many opportunities.

Amazing salary packages

If you are motivated by money (no, we are not saying it is a bad thing!), then a career in the automotive industry may be right for you. On average, the annual salaries of automotive professionals are anywhere between $50,000 and $110,000. If you occupy a high post in an automotive company, your salary can easily cross $300,000.

Of course, the salaries will depend on the type of career path you are following. The figures mentioned above are just common averages. While these salaries are nothing compared to those of a millionaire, it is certainly more than enough to guarantee a steady life.

What are some types of careers in the automotive industry?

There are many types of careers in the automotive industry; some include:

Data science

Data science is one of the most important jobs in the automotive industry. In this role, your primary goal is to improve the efficiencies of different stages to provide better customer satisfaction and safety, like cost reduction, improvement of the production cycle, etc.

Research

As we know, there has been quite an amazing growth in the automotive industry. The industry is constantly changing and requires efficient resource management. In such cases, research can help look at issues from various angles to provide the most effective solution.

Designing

Of course, cars need to look amazing. However, they need to be robust. While the car’s design might not require a lot of technical skills, you will still have to fit all the dimension parameters and calculations on the car. As a skilled design expert, you will go far in the automotive industry.

Production

As you can guess, the production department is responsible for all the heavy lifting in the automotive industry. This is the place where the brains of the operation meet the brawns. All concepts and designs of the automobiles come to life in this part. If you want to get into the production role, you need to be a qualified mechanical engineer first.

Conclusion

As you can see, a career in the automotive industry is quite promising. The paycheck is great, and your career and personal life will become steadier. However, like all types of careers, you will have to work hard in this industry to make it big. If you have any questions regarding this article, please drop them in the comment section below.