Welcome to March and Fraud Prevention Month!
We often hear about security issues in the industry- with a significant focus on theft. There is also another area of activity that we need to increase our focus on, that is the various forms of fraud that we may encounter.
Fraud can occur in a variety of ways, but there are three key areas where we have a great opportunity to reduce the risk- Cyber Security, Employee Risk, and Customer Care.
Although we hear about cyber-security frequently, the average employee rarely gives this significant attention. A combination of complacency and the notion that “it won’t happen to me” can govern behaviour that leaves the dealership at risk.
Ensure that all your staff are trained on cyber security awareness, including the ability to identify phishing emails and the use of passwords as basics. Teaching all staff (not just those in administration roles) what best practices look like can increase your cyber security and help identify gaps. Going beyond the basics to manage passwords, remote access, issuing IT spot checks and creating solid computer related polices further complements training to create an environment where cyber security stays in focus and due diligence becomes second nature. If you make cyber-security vigilance a priority, your staff will too.
Knowing who you are hiring is the foundation of both trust and fraud prevention. Issuing a background check can alert you to fraud-related history before your dealership becomes exposed. Background checks are a fast and easy way to take a first step in protecting your business. If you are not currently completing background checks, you can reach out to a member of the CADA 360 Automation team to find out more about accessing this free service. Having a background check completed for your employees demonstrates due diligence and can go a long way to early fraud prevention.
Sadly, we continue to hear about situations where fraud-based activity still occurs based on hard copy material and general access to information in the individual’s surroundings. Building fraud prevention into your customer service training can help reduce exposure to this type of fraud. Take a short self-audit and review these basic items in your dealership:
- Look for data. When you walk into a cubicle or office on the sales floor, can you see any customer information? Look closer at desktops, papers, and open screens, these are all potential sources of information for fraudsters.
- Listen to conversations. When enquiries are made via phone, are your staff inadvertently sharing personal information they shouldn’t be? Are conversations that contain information that can potentially be used fraudulently being held within ear shot of the public or other parties that should not be privy to what is discussed?
- See what your staff understand about fraud. When it comes to customer service, we all strive hard to be accommodating and service oriented, but do you have staff members that are exceeding the boundaries of appropriate sharing? This can occur in several ways. Things like speaking volume, filling airtime with idle chatter that may inadvertently expose information and discussing their situation in areas such as the customer lounge, coffee area or other busy locations are all exposure points. Lastly, be sure that you have good customer service polices that your team are trained on. Knowing what is and is not acceptable does not always come naturally and setting the expectation clearly is the best way to keep everyone on the same page to meet the goal of fraud prevention.
Some of these policies may include updating your processes to include more due diligence around test drives and the verification of licenses, the use and storage of personal data for both customers and staff, and additional steps to onboarding such as adding the requirement for background checks or training before new hires can begin certain parts of their role.
Regardless of where you are at in your fraud prevention journey, CADA 360 HR Automation is here to help. From providing our subscribers with free access to background checks and new hire training to giving you access to Professional Advisors, and resources to help you reduce your risk, we are just an email away! If you would like to know more, then please reach out and #letstalk.