Invoice fraud and data breaches are on the rise. Here are some stories around the world where companies are losing money due to cybersecurity and tips on preventing fraud in your business. Google and Facebook tricked out of over $100 million There are few technology companies as well-known and influential as Google and Facebook, but that didn’t stop the two tech giants from being tricked out of $123 million thanks to invoice fraud. Criminals all over the world are posing as vendors or partners in order to convince businesses to wire large amounts of money to a certain location. Often times, this location is an offshore account, where criminals can then siphon money for services that they never actually provided. Many businesses are fooled into paying the invoices due to the fact that the e-mail addresses it's coming from “appears” to be from a business partner, and the wire addresses exist at legitimate banks. Invoice fraud was a factor in the downfall of Diesel Jeans, an Italian retail clothing company. Interestingly enough, the entire business e-mail scamming industry has more than doubled recently, growing 136% percent between December 2016 and May 2018. While the method isn’t always successful, criminals targeted
What exactly is invoice financing? Let’s face it, waiting for 30, 60, 90, or even 180 days or longer to get paid by your customer places a huge strain on your operation. You need to be able to make your payroll, buy supplies, and pay the lease, so having cash on the books is important. Invoice financing is a way for businesses to sell their unpaid invoices to another company in exchange for a lump sum payout. There are several ways to sell your invoices The first and most common for small and medium-sized businesses are factoring. Factoring companies usually like to take your full book of receivables and pay you a fixed rate. Some smaller companies like this service because they do not have to worry about collecting on the invoice as the factoring company will then handle the collections process. The downside to all of this for businesses is factoring companies can charge up to 30% APR and could even go higher if you have a customer that doesn’t pay on time. Another great option for businesses is to sell their invoice(s) to a bank, an asset fund or a hedge fund. These types of transactions work similarly
Have you heard the buzz word "blockchain" used in conversation and wondered to yourself....what is all this hype about? Or better yet, what the heck is the blockchain?