Brian G. Cesaratto, Member of the Firm in the Litigation and Employment, Labor & Workforce Management practices, in the firm’s New York office, was quoted in Security Magazine, in “Best Practices for Detecting and Managing Fraud,” by Sarah Ludwig Rausch.

Following is an excerpt:

Both from a physical security and a cybersecurity perspective, there are lessons security leaders can learn from each other when it comes to fraud detection and management. Combining best practices from across physical security and cybersecurity investigations, security leaders can use innovative tactics to detect, manage and reduce fraud in their organizations.

The current landscape

The proliferation of electronic systems and the reliance of companies on these increasingly sophisticated systems has created additional fraud risks, says Brian Cesaratto, CISSP, CEH, a cybersecurity and data privacy attorney at Epstein Becker Green in New York City. “In the last few years, there has been an increase in integration of systems and partnerships between different vendors, so you have an expanded attack surface as a result,” Cesaratto says. This expansion of electronic systems has also increased reliance on third-party systems to provide services, escalating risk.

The increase in remote and hybrid work as a result of the pandemic is another pain point. “Again, there’s an increased attack surface because you have computers and other outside devices connecting with cloud-based services,” says Cesaratto. …

Fraud detection & investigations best practices

With decades of advisory experience between them, here’s what these experts consider best practices for managing and detecting fraud.

Have a written fraud prevention program. “It can’t be ad hoc or verbal — you need strong, well-written policies, procedures and guidelines,” says Cesaratto. “This is the foundational requirement because that’ll explain your process and your alignment to a fraud reduction framework.” …

Take time to train staff. Cesaratto says training staff how to recognize and report fraud is crucial for fraud prevention …

Institute an insider threat prevention program. This includes background checks for potential hires and monitoring employee activity consistent with what systems they have access to, says Cesaratto. “The more risk there is for fraud, the more stringent you want the hiring, vetting, supervision and monitoring to be,” he says.


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