How Advisors Can Protect Clients From Instant Payment Fraud
A few ways that clients can increase their security include:
- Using two-factor authentication at login, like entering a passcode from a text in all financial applications that offer it.
- Being cautious when reacting to unsolicited requests for money or information.
- Using a password-keeper application to ensure the highest levels of security.
A few ways that RIAs can increase security within their organizations include:
- Bring visibility to the state of fraud through educational materials or lunch and learns.
- Work with their bank to require dual approval at the company to release funds.
- Set up independent processes that establish trust, like appointing individuals to fraud prevention teams so they can work together to approve payments and flag irregular behavior.
Working alongside their custodian and clearing firms, advisors can provide critical information about clients’ preferences to improve pattern detection and help limit the potential for fraudulent activity. If an advisor offers banking and lending services through a bank partner, they should feel empowered to speak with their bank and learn about the securities in place to protect their clients or businesses.