Ask the Expert: Banking, sponsored by Hancock Whitney

By
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 Robert Stuart
President
Hancock Whitney
As regional president for the market, Stuart leads Hancock Whitney’s commercial, middle market, and corporate banking growth and strategy as bankers serve clients and businesses in communities throughout Greater Baton Rouge. Stuart is an active supporter of and served with numerous community organizations, including Arts Council of Baton Rouge, Baton Rouge Area Chamber of Commerce, Junior Achievement of Greater Baton Rouge & Acadiana and Big Buddy of Baton Rouge.

What are the most common types of fraud that affect businesses?

While cyber fraud continues to grow, especially through spear phishing, business email compromise (BEC), malware, and spoofed websites or URLs, check fraud remains a major concern. With 90% of businesses still using checks, this traditional payment method remains one of the most vulnerable to fraud.

How can I detect fraud early in my business?

Early fraud detection requires a layered approach combining technology, employee training, and strong internal controls. Here are some key steps businesses can take:

  • Implement Positive Pay and ACH Positive Pay to identify and prevent fraudulent activity
  • Monitor financial transactions with real-time alerts
  • Educate staff to recognize phishing and social engineering
  • Segregate duties
  • Enable multi-factor authentication to ensure secure access to financial systems

What internal controls should I implement to prevent fraud?

Implementing strong internal controls such as dual approval for transactions, segregation of duties, and secure network access can significantly reduce fraud risk. Businesses should also use fraud prevention tools like Payee Positive Pay and educate employees on identifying fraud threats.

How can I protect my business from cyber fraud and online threats?

To defend against cyber threats, businesses should educate employees on common attacks like phishing and ransomware, enforce multi-factor authentication, and secure sensitive data with firewalls and encryption. Remote workers should use VPNs to ensure safe access to company systems.

What role do employees play in preventing fraud?

Employees are the first line of defense against fraud. Their actions, awareness and adherence with internal security procedures play a vital role in protecting the business from internal and external threats.

 

445 North BLVD, Baton Rouge | 225-381-0495 | hancockwhitney.com

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