1. 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

2. Disclaimer
This document is designed to provide general information only and is not comprehensive nor is it legal advice. In providing this information, neither KeyBank nor its affiliates are acting as your agent, broker, advisor, or fiduciary, or is offering any tax, accounting, or legal advice regarding these instruments or transactions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. KeyBank does not make any warranties regarding the results obtained from the use of this information.
©2017 KeyCorp. KeyBank is Member FDIC.
CFMA #224933

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

4. 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

5. 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

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

7. 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 Compromise (BEC) scams
Wire Transfers
Sources: 2017 AFP Payments Fraud and Control Survey

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

9. 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

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

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

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

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

14. Fraud Prevention & Best Practices
Dual controls/Separation of duties
Employee education and awareness
Written and published policies and procedures
Security alerts/ 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:

15. Questions
©2017 KeyCorp. KeyBank is Member FDIC