Austin CPA Chapter

Controllers Conference - Sept. 24, 2014

Reduce Your Risks:
Being Prepared for Fraud
Thwarting Fraudsters,
Embezzlers, Hackers,
Forgers, Counterfeiters and
Various and Sundry Other
Evildoers
Potential Evildoers to watch out for:
Suspicious looking people
Innocent looking people
People you work with
People at computers who are 10,000 miles away
Strangers
Everyone else

Tip #1:
Tip #2:
Maintain Good
Physical Security
Tip #3:
Maintain separation
of duties and
dual control
Tip #4:
Reconcile early
and often
Tip #5:
Beware of the CAT!
Commercial Account Takeover
is to businesses what identity
theft is to individuals.

Tip #6:
Comply with the technology and anti-malware standards
in your online cash management agreement
Use a dedicated computer
Maintain separation of duties and dual controls for
online users
Stop using Windows XP!
Online Cash Management Best Practices:

Tip #7:
USB flash drives are dangerous vectors for malware.
All USB connected devices have firmware that can be
corrupted.
Know the provenance of all USB connected devices.
Disable USB ports for mass storage devices
News Flash!

Tip #8:
Positive Pay Service is an effective, but
underutilized method for stopping
forged and counterfeit checks.
Payer sends a positive pay file to
the bank when checks are cut.
Bank matches incoming checks to
the file and rejects checks that
dont match.
Useful Resources:
The Better Business Bureaus website on Data Security Made Simpler:
http://www.bbb.org/data-security;
The Small Business Administrations (SBA) website on Protecting and Securing Customer
Information:http://www.sba.gov/community/blogs/community-blogs/business-law-
advisor/how-small-businesses-can-protect-and-secure-cus;
The Federal Trade Commissions (FTC) articles on protecting
data:http://www.ftc.gov/bcp/edu/multimedia/interactive/infosecurity/index.html;
The National Institute of Standards and Technologys (NIST) Fundamentals of Information
Security for Small Businesses: http://csrc.nist.gov/publications/nistir/ir7621/nistir-
7621.pdf;
The jointly issued Fraud Advisory for Businesses: Corporate Account Takeover from the
U.S. Secret Service, FBI, IC3, and FS-ISAC available on the IC3
website:http://www.ic3.gov/media/2010/CorporateAccountTakeOver.pdf;
NACHA The Electronic Payments Associations articles on Corporate Account Takeover
for financial institutions and banking customers:
http://www.nacha.org/c/Corporate_Account_Takeover_Resource_Center.cfm;
Entrepreneur on Internal Fraud: http://www.entrepreneur.com/article/227689;
ACFE survey results: http://www.acfe.com/occupational-fraud.aspx.

About Business Bank of Texas
Business Bank of Texas, N.A provides
responsive, personal and realtime
business banking to companies
throughout the US. Our online, remote
banking business model, helps us keep our
overhead, service rates, and fees low
while enabling 24/7 online banking and
remote deposit capture.
About Dwayne Kolly
Dwayne is the Chief Financial Officer at the Business
Bank of Texas. He has served community banks in
south and central Texas for nearly 30 years.