The Pandemic Has Increased Risk of Fraud, Cyberattacks, and Noncompliance

The Run-Down: A study conducted by KPMG LLP has found that working from home due to the pandemic has increased the risk of external fraud and cyberattacks and made it more difficult to ensure compliance measures are being met

  1. Companies across the world have highlighted concerns that these risks will only increase in the upcoming year
  2. Amanda Rigby, KPMG’s U.S. forensic service network leader, said “these issues create a ‘threat loop’ which can quickly overwhelm companies with economic, regulatory, and reputation loss”
  3. However, IT professionals – if companies provide antivirus protections and increase cybersecurity training with their employees, organizations will be able to more effectively manage these risks

Why You Should Care:

This news comes right after paused withdrawals after reports of unauthorized activity. In real-time, we are seeing what this study has uncovered. As markets, and even entire industries, continue to move online, fraudulent activity is going to become more and more of a concern. According to the KPMG study, two-thirds of the U.S.-based companies said they expect external fraud to increase in the next year, their main concerns being cyber breaches and compliance risks. 

If the concerns are any preview of what’s to come, organizations must face these issues proactively. Cyber threats are becoming more dangerous, as those who conduct them are becoming more skilled and able to reach a wider group of targets. Even if your business is smaller, that does not mean you are completely safe. As cyber-attacks are more easily launched, it is likely more businesses will be exposed, regardless of their nature or size.

This is important for any organization to keep in mind as they grow their business. While you hope you never find yourself in this position, it is always better to be proactively protected than to have to problem solve in crisis mode. Developing a strong cybersecurity and compliance program that is consistently monitored, reviewed, adapted, and improved is crucial for any and every business.

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