Prevent & Protect: Commercial Fraud Playbook

You play a critical role in preventing fraud. Frost is committed to helping you stay informed, identify potential threats, and implement best practices to safeguard your company.

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Fraud Educational Resources

Fraud can happen when you least expect it. While many employees feel confident identifying warning signs, human error remains one of the leading contributors to fraud-related financial losses. Stay one step ahead of scammers by exploring our Commercial Fraud Playbook courses.

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Insights from preeminent fraud experts.

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FAQs

1.
What are the most common commercial fraud schemes?

Business email compromise, invoice and vendor fraud, check fraud, payroll diversion, account takeover, card fraud, and insider theft.

2.
Can a fraudulent payment be recovered?

Sometimes, if you act quickly. Funds can often be intercepted within hours, but rarely after days. Wires and checks offer some prospect of recovery; instant payments and cryptocurrency almost none. Call your bank for specific recovery options.

3.
What remedies are available once fraud has taken place?

Payment-system remedies such as recalls and chargebacks; claims against the bank; civil claims against the fraudster or whoever received the money; and insurance. Sometimes multiple remedies can be pursued at once. The big takeaway is to notify your institutions quickly.

4.
What should I do if I’ve been scammed?

Call your bank's fraud line first. Then freeze the account, halt pending payments, reset credentials, preserve the emails and logs, and report to law enforcement the same day. Notify your insurer. Investigate afterward notification. Time is of the essence.

5.
If I’m not sure if it’s a scam, should I still report it?

Absolutely. A false alarm costs a phone call. Waiting for certainty can cost the entire payment.

6.
What’s the most effective way to mitigate fraud?

Two things: Verify every new or changed payment instruction by calling the counterparty on a number you already hold—never one supplied in the request. That single step defeats a compromised mailbox, a spoofed domain, and a cloned voice alike. Second, closely monitor your accounts.

7.
Who is liable if fraud occurs?

This depends on a host of factors specific to each case. To determine liability, you’ll need to know how the payment was made, what your account agreement says, and where you are geographically (provisions vary by state or province).

8.
What type of businesses are most at risk?

Those with high payment volumes, urgent transfers, and many counterparties, like real estate, legal, construction, manufacturing, healthcare. But the real vulnerability is structural: any business where one person can both add a payee and release a payment.

9.
What are the key steps to identifying fraud?

Watch for urgency paired with secrecy, changed banking details, a sudden switch of communication channel, small oddities in a domain or invoice, or strange or unverifiable charges in your account.

10.
How can I prevent fraud from happening?

There are several ways you can protect yourself. Layer your controls. Monitor accounts. Verify payment instructions. Require dual authorization. Use Positive Pay and ACH filters. Don’t mail checks. Educate yourself on the latest scams. Foster a culture of deliberate action, never rush payments.

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