How Implementing Hyphen Wallet Can Prevent Fraudulent Activity
There has been a rise in checks being stolen from mailboxes and washed. Check washing scams involve criminals stealing checks, using chemicals to remove the ink, changing the payee names and usually the dollar amounts and then fraudulently depositing them. This happened to a Philadelphia-based electrical contracting company who mailed checks all from the same mailbox. Criminals washed the checks for a grand total of $140,000, which of course, also resulted in payees not receiving their checks1. Thankfully, the company office manager and bank management prevented the fraudulent checks from being cashed. Using a cloud-based payment management system could have eliminated a lot of heartache.
What is a Business Email Compromise (BEC)?
A June 2021 FBI bulletin warned construction companies about observed cyber actors exploiting pre-existing business relationships between construction companies and clients to conduct BECs. The targeted victims included construction companies who had contracts with a variety of public and private sector customers. This fraudulent activity cost victims hundreds of thousands to millions of dollars. The information collected from various free or subscription-based online sources included project costs, bidder information, and contact information of involved parties. With this detailed information, cyber actors were able to target fraudulent messages using the company logo and signature line and ask victims to update automated clearing house (ACH) or direct deposit account information2.
Fraudulent Activity Can Damage Your Reputation and Business
In residential construction, thousands of dollars are paid daily or weekly to Subcontractors, Trades and Suppliers. The threat of large payments being misdirected by cyber criminals can seriously reduce your profits and even cause you to lose your business. It’s critical to reduce your risk of being a victim of cyber impersonators who appear to be doubling down on phishing attacks, cyber actors conducting BECs and criminals who have a penchant for check washing. One of the best ways is to research and then invest in secure payment management software.
How to Prevent Fraud with Hyphen Wallet
Hyphen Wallet is an easy-to-use method for managing payments and a great way to tap into fraud prevention because transactions are made via a highly secure, password-protected online portal. Hyphen Wallet provides Suppliers a window into payments made by Builders with real-time payment status via the portal. Hyphen Wallet also allows Suppliers to view payment reports in SupplyPro and download them into Excel or PDF for further analysis. Real-time visibility into all transactions enables verifying and tracking payments throughout the process. Moving to an automated construction billing and payment software reduces the possibility of fraudulent activity or checks being lost or delayed in the mail.
Enjoy Peace of Mind with Reduced Risk and Enhanced Security
Hyphen Wallet combines payment methods, currencies, subsidiaries and regions using payment integration in real time. Instant reconciliation ensures a fast and accurate financial close cycle and improved cash flow visibility and working capital management for Suppliers. For Builders, automation makes it easy to check records, track past and present expenses and identify fraudulent charges to ensure trusted Trade partners are receiving payments safely.
Learn more about Hyphen Wallet for Suppliers
There is no need to rely on risk-prone legacy payment systems when you can receive safe and secure payments of your choice with Hyphen Wallet. Take advantage of faster and more secure payments that will ultimately help you manage and grow your business more efficiently by signing up or scheduling a demo.