Published September 4, 2024 • 6 Min Read
We asked three RBC experts about their experiences and advice on how to prevent fraud – from email phishing to cheque fraud to responding to an urgent call for money from someone you supposedly know.
Advice from the frontlines
Our increasingly digital-based world is helping fuel a rise in fraud. When you consider that a cyber attack is estimated to happen every 39 seconds, it’s worth a few minutes to learn how and where these hacks are happening to find ways to protect your farm business.
We asked three RBC experts about their experiences and advice on how to prevent fraud – from email phishing to cheque fraud to responding to an urgent call for money from someone you supposedly know. Fraud is frustrating, embarrassing and can result in big losses in money and time when it hits.
Make it matter
Jessica Lynn Kyncl manages a team of 17 rural commercial banking advisors across Alberta. “We’ve definitely seen an increase in fraud over the past year as more platforms turn to digital for payment options – wires, direct deposit and etransfers – for anything from equipment purchases to staff payroll,” says Kyncl.
That’s one of the reasons she estimates one in three conversations RBC advisors have with customers likely include some talk of fraud. And yet, she’s fully aware of how fraud prevention can fall to the bottom of the list when talking with farm businesses, when there are other topics to cover about financial solutions.
“Using examples and local stories about fraud can help provide the light bulb moment to make a connection with customers,” says Kyncl. “We encourage advisors to talk about the products and services we have to help protect customers against fraud as part of their annual review with clients.”
Kyncl offers some tips from her perspective on helping reduce the chances for fraud. “Never share passwords,” she says. It’s not new advice, but it’s important. “We’ve seen examples of bookkeepers, accountants and even family take advantage of banking passwords and it goes so much deeper than fraud when it’s people you trust,” says Kyncl.
With credit card fraud also on the rise, in large part because of the level of online purchasing, Kyncl suggests farm businesses consider getting a credit card that’s just for smaller online purchases with a low limit, like $1,000. “Farm businesses often have very high limits on their credit card that carry a much higher risk in the case of fraud.” Says Kyncl.
Why today
Tari Faulkner works with RBC Commercial and Business Relationship Managers and has heard the familiar refrain that “it’s not going to happen to me” too many times. And then it does. “Compromised email is the biggest problem we’re seeing with fraud,” says Faulkner, Senior Manager Business Operations for RBC in Manitoba, Saskatchewan, Nunavut and Northwestern Ontario.
Faulkner spends much of her time arming relationship managers with the tools to help clients take a more proactive approach to fraud. “When you consider what the real costs are with fraud – loss of money, trust and time spent reporting and recovering – never underestimate the full impact,” she says.
Phishing refers to fraud that covers emails or texts that lure someone to give out personal information or click on a link that can install malware on a digital device.
“Fraudsters hang around email, watching conversations and getting a sense of what is going on with a particular business or household,” explains Faulkner. “They latch on to an opportunity and usually create a sense of urgency and often an emotional appeal. That’s why I always remind people to ask why you need that information or that money transfer today.”
Preventing fraud takes a proactive approach, as do many things in a farm business. And Faulkner encourages her Relationship Managers to work with customers to build a proactive fraud plan that covers the before, during and after aspects. RBC has a template for customers to use that includes things like what are you doing ahead of time to protect yourself, what do you do if you are victim of fraud, and what do you do afterwards.
“Everybody has a business plan, this is just another component,” says Faulkner. “If farm equipment breaks down, there’s a plan on how to fix it. What is your plan if fraud happens?”
One of her pieces of fraud prevention is simple. “Take a breath, slow down and ask why today,” says Faulkner. “I’m amazed at how good fraudsters are at looking for opportunities, creating a sense of urgency and playing on our emotions.”
That’s why urgent emails are a big red flag for her – and a reminder to never reply to an email or text if you are suspicious. Bogus emails can be just one digit different than from someone you might be expecting. “Don’t contact people from the information they send through an email, use another route to verify, like a phone call, especially if there is a request for money.”
Added online security
Shauna Mulder at RBC as a Treasury Solution Specialist helping clients with electronic banking options to streamline business payments and help reduce the risk of fraud.
She’s often the one that gets a call when there’s been an RBC customer affected by fraud – and the time, money and headaches that come with it. That’s why she champions RBC’s Express platform, a Cadillac for online banking designed for commercial clients, including farm businesses, that offers a more robust way to bank online.
“Fraud and security are key parts of the platform,” says Mulder, who covers a large part of Alberta. “We also help customers move to online banking and away from paper-based banking, including cheques that are notorious for fraud.”
Cheques can be easily lost or intercepted and reproduced, and fraudsters often don’t give up after using a cheque once. “There is the risk of someone hanging on to the cheque, keeping a signature and use it multiple times,” says Mulder.
Given that farmers deal in high dollar transactions, Mulder says moving customers to RBC Express can remove the risk of paper banking and provide added controls for online banking to help reduce the risk of fraud.
“RBC Express provides heightened security by setting rules and permissions for who can view and access funds, and setting higher limits for more specialized transactions like equipment,” says Mulder. “There is a learning curve with more specialized online banking options with RBC Express and we offer training and webinars to help customers learn how to do direct deposit, wire transfers, etc.”
For more tips on preventing fraud, reporting fraud or accessing RBC cyber security resources, contact your RBC advisor or visit rbc.com/cyber.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
Share This Article
