The Hidden Cost of Fraud: Key Red Flags and Prevention Strategies for Businesses

Interview with: Sara Lindgren

As fraud tactics become more sophisticated, fueled by the rise of AI, businesses face increasing risks from evolving threats. Helping our clients stay protected at Seacoast Bank is more than a service — it's a commitment.

We spoke with Sara Lindgren, Executive Vice President and Head of Treasury Management Sales at Seacoast Bank, about what today's businesses are up against, how they can reduce risk and why building a culture of fraud prevention is more important than ever.

Q: What are the biggest fraud threats facing businesses today and how have they evolved in recent years?

Business email compromise, phishing and payment redirection scams are rising and getting harder to spot. With AI now part of the equation, these tactics are even more sophisticated and convincing.

While fraud once focused mostly on large corporations, we now see small and mid-sized businesses becoming more frequent targets. It's no longer a matter of if fraud will happen — it's when.

We work closely with our clients to assess their vulnerabilities and build ongoing prevention strategies. The key is to make fraud prevention part of a business's culture, not a one-time setup. It takes continuous effort, the right tools and consistent education.

Q: What makes ACH and wire payments especially vulnerable and how can businesses protect themselves?

ACH and wire payments are fast, often irreversible and usually involve large amounts of money — making them attractive to fraudsters looking to act quickly and then vanish.

We advise clients to use layered security, including dual approvals, role-based entitlements and secure online platforms. These simple steps create essential checks and balances.

Seacoast also provides tools such as Check Positive Pay, ACH Positive Pay and ACH Filters to give businesses visibility and control over transactions before funds ever leave their accounts. Businesses can significantly reduce fraud exposure by combining these tools with internal practices like separating payment duties and setting alerts for high-dollar or unusual activity.

Q: What unique fraud risks do small and mid-sized businesses face and how can they mitigate them?

Smaller businesses often don't have in-house fraud or cybersecurity teams, which puts them at greater risk. Many also rely on manual processes or email communication — channels that fraudsters can easily exploit.

At Seacoast, we help these businesses identify their unique risks and implement solutions that are easy to adopt, even without a large back-office team.

Equally important is employee education. We work with clients to foster a culture of fraud awareness, where staff members are empowered to raise concerns and stay alert to potential threats.

Q: What are some common red flags for fraud and how does Seacoast help businesses spot them?

One of the biggest red flags is a sudden change in payment instructions, especially if it comes with a sense of urgency or is outside normal communication channels. Fraudsters often impersonate executives or vendors to push through fake payments.

Other warning signs include vague invoice data, inconsistencies in payment requests, misspelled email domains or anything that strays from standard procedure.

We advise employees to pause, ask questions and follow internal controls. At Seacoast, we help clients design workflows using treasury tools that catch red flags before money leaves their account.

Q: How can businesses partner with their bank to strengthen their fraud strategy?

It starts with an honest conversation. We meet with clients to review their payment workflows, user access and potential risk areas — then tailor recommendations to their specific needs.

Our support doesn't stop after implementation. We monitor activity, answer questions and adjust solutions as the fraudsters’ tactics evolve.

At Seacoast, we see fraud prevention as a true partnership. Our role is to help businesses stay protected — not just for today, but well into the future as they grow.

In today's digital economy, fraud is a reality every business must be prepared to face. With proactive education, smart tools and strong banking relationships, businesses can protect what they've built. At Seacoast Bank, we're committed to helping clients stay secure, informed and confident as they grow.