Are You Ready for Increased Payment Fraud in the Wake of COVID-19?
Explore three key things you should watch out for as you work to keep payments, policyholders and service providers safe in the wake of COVID-19—and three ways you can fight back against increased payment fraud and cybercrime activity.
Over the past weeks, we’ve seen the best of humanity on display, whether it’s the heroic efforts of healthcare workers or the countless small acts of kindness among neighbors and loved ones. But unfortunately, challenging times also bring criminals and fraudsters out of the shadows, as they work to exploit the increased levels of distraction, uncertainty and fear around them. For insurance providers, it’s an especially critical time to stay on top of the latest cybercrime and payment fraud tactics and trends—and take creative, proactive steps to keep your policyholders, claimants and service providers safe. Here are a few important things to consider as you move through and beyond the challenges of COVID-19.
1. Beware of social engineering attacks
Worries about the safety of friends and loved ones have created an especially fertile environment for social engineering attacks—where criminals impersonate legitimate organizations and play on heightened fears to scam their victims. Make sure you actively re-educate your policyholders, providers and employees on the how they can recognize legitimate communications from your organization, especially those that involve sending or receiving payments. This constant, ongoing communication and education, working together with effective cybersecurity and fraud prevention strategies, are the most effective tools for preventing social engineering attacks from taking root in a crisis and leading to payment fraud.
2. Adapt your payment fraud models to reflect a new reality
COVID-19 has disrupted people’s behaviors and daily habits in ways we couldn’t have imagined six months ago. Many of these changes are temporary, but some of them will likely persist long after the current uncertainty has ended. As your policyholders’ and service providers’ habits and behaviors shift, you will need to quickly adapt and update your payment fraud models and protections to reflect these changes. This will allow you to identify and prepare for the emerging fraudulent activity that’s based on new patterns of behavior before it can sneak up and damage your organization.
3. Stay focused on your cybersecurity playbook and response capabilities
Dealing with today’s sophisticated and rapidly evolving cyberthreat landscape is difficult enough under normal circumstances. And right now, circumstances are definitely not normal. As you navigate the inevitable disruptions to normal business routines, processes and workflows, make sure you have the resources in place to maintain your cyber and fraud analytics and response capabilities throughout the crisis. It also makes sense to look closely at investments that can streamline and automate your cybersecurity and claim payment operations over the longer term, so you can maintain your security and fraud posture with fewer resources.
4. VPay is here to help
As you work through these issues (and many others) over the coming months, VPay is ready to help you maintain the integrity and security of your claim payment processes and operations. We will continue to provide a completely remote-ready, compliant and secure solution that enhances your efforts to minimize fraud and keeps payments moving safely and reliably, so you can focus on the future of your business.