Don’t Become a Statistic: Cybersecurity Best Practices for Treasurers Rocky Mountain Summit 2017 Presented by: Tammy Gedetsis, KeyBank Enterprise Commercial Payments Clark Smith, YESCO

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Presenters YESCO Clark Smith Director of Finance / Treasurer KeyBank Enterprise Commercial Payments Tammy Gedetsis Vice President - Senior Digital Product Manager

Agenda Payments Fraud: Current Environment Types of Payments Fraud and How to Protect Against Them YESCO Case Study Protecting Businesses from Payments Fraud Best Practices for Prevention and Recovery Questions

Today 74% Payments Fraud: Current Environment Majority of companies continue to be impacted by payments fraud. Criminals are increasingly more organized and sophisticated. of organizations were targets of payments fraud in 2016 Sources: 2017 AFP Payments Fraud and Control Survey

Sources: 2017 AFP Payments Fraud and Control Survey Types of Payments Fraud 75% of organizations experienced check fraud in 2016. Check Fraud Business Email Compromise (BEC) scams Wire Transfers Sources: 2017 AFP Payments Fraud and Control Survey

Sources: 2017 AFP Payments Fraud and Control Survey Types of Payments Fraud 74% reported their organizations were exposed to BEC scams in 2016 Check Fraud Business Email Compromise (BEC) scams Wire Transfers Sources: 2017 AFP Payments Fraud and Control Survey

Sources: 2017 AFP Payments Fraud and Control Survey Types of Payments Fraud Check Fraud Business Email Compromise (BEC) scams Wire Transfers The 2nd most popular target for payments fraud in 2016. Sources: 2017 AFP Payments Fraud and Control Survey

YESCO Manufacturer of electric signs, based in Salt Lake City, Utah Founded in 1920 Approximately 1,000 employees located in 28 offices throughout the western U.S. Expanding network of franchised locations in the U.S. and Canada Featured on the CBS television series Undercover Boss in 2016

Email purported to be from CEO requests a wire payment be sent YESCO Case Study Email purported to be from CEO requests a wire payment be sent

YESCO Case Study Appears to be a normal email conversation between these two individuals

The instructions follow and are submitted for processing YESCO Case Study The instructions follow and are submitted for processing

YESCO Case Study Counterfeit check drawn on an account number for which no checks are issued

Fraud Prevention & Best Practices Dual controls/Separation of duties Employee education and awareness Written and published policies and procedures Security alerts/Email notifications Fraud prevention products from your bank Monitor your accounts frequently Create an environment where employees are empowered Ways to help protect your business include:

Questions ©2017 KeyCorp. KeyBank is Member FDIC. 170424-224933