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Report: Electronic security is top-of-mind for middle market execs

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Report:  Electronic security is top-of-mind for middle market execs

Larger middle market companies report losing more than $1 million per year to theft and fraud.

The astonishing velocity of advancement in electronic communications and commerce in recent years has been largely a blessing for most companies.  But recent events have emphasized the dangers of this brave new world for middle market executives.

According to Cleveland-based KeyBank’s February Middle Market Business Sentiment Report, a majority of middle market firms expressed serious concern about data and identity theft, mobile device security, and payment fraud, and are taking steps to address these issues.

The report indicated that the potential theft of confidential client data is the most prominent security concern, followed by mobile device security, business identity theft, and payment fraud.

"The potential theft of confidential client data is the most prominent security concern, followed by mobile device security, business identity theft, and payment fraud."

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“Protecting your bank accounts and adhering to safe online and mobile practices are essential,” KeyBank Senior Vice President is quoted as saying. “But it’s also important to defend your company from the inside out. Internal controls, including your company’s accounting firm, can be vital allies in defending against fraud.”

Perhaps most strikingly, the report indicated that companies in the upper tier of the middle market – those with revenues of above $500 million – are losing over $1 million annually to electronic theft and fraud.

KeyBank Executive Vice President Alfred J. Carpetto commented that “The larger the company, the bigger the risk of loss — especially due to payment fraud. To minimize these losses, it’s critical to not only review services offered by banks and other third parties, but also your internal processes. An effective evaluation will break down the analysis into five specific areas: cash disbursements, cash receipts, general journal entries, month-end procedures, and payroll.”

Click here to read the full report.

 

 

 

 

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