Fraud & Cyber Security in Treasury

For corporate treasury, fraud and cybersecurity are direct threats to the company’s most liquid assets. The function’s access to payment systems and sensitive financial data makes it a prime target. Protection is not an IT issue alone; it is a core operational responsibility of the treasury department.

For corporate treasury, fraud and cybersecurity are direct threats to the company’s most liquid assets. The function’s access to payment systems and sensitive financial data makes it a prime target. Protection is not an IT issue alone; it is a core operational responsibility of the treasury department.

Primary Threats Targeting Treasury

Treasury faces specific, high-impact attack vectors:

• Business Email Compromise (BEC / “CEO Fraud”): The most common and damaging threat. Criminals impersonate executives or trusted partners via email to authorize fraudulent wire transfers.

• Payment Process Fraud: This includes internal fraud through the manipulation of payment files or vendor master data to divert funds, and external fraud through forged checks or intercepted electronic payments.

• System Takeover: Attackers gain access to treasury’s bank portals or Treasury Management System (TMS) through stolen credentials or malware to initiate payments directly.

• Data Breach & Espionage: Theft of confidential financial data, such as merger plans or bank account details, used for competitive advantage or to enable further fraud.

A Practical Defense Framework: The Three Lines of Control

Effective protection requires layered defenses across people, processes, and technology.

Essential Actions for Incident Response

A prepared treasury department has a plan that is rehearsed:

1. Immediate Containment: Designated staff must know how to immediately contact banks to stop payments and freeze compromised accounts.

2. Preserve Evidence: Isolate affected systems without shutting them down to preserve forensic data. Document all steps taken.

3. Activate the Team: Have clear contacts for internal legal, communications, and external cybersecurity forensic experts.

4. Communicate with Precision: Follow a pre-defined protocol to inform senior management, law enforcement, and insurers without causing unnecessary public alarm.

In practice, treasury’s role is to build a culture of controlled skepticism. Every payment instruction, especially those requesting urgency or secrecy, must be verified. By embedding these controls into daily routines, treasury moves from being a vulnerable target to a secure guardian of corporate value.

Treasury faces specific, high-impact attack vectors:

• Business Email Compromise (BEC / “CEO Fraud”): The most common and damaging threat. Criminals impersonate executives or trusted partners via email to authorize fraudulent wire transfers.

• Payment Process Fraud: This includes internal fraud through the manipulation of payment files or vendor master data to divert funds, and external fraud through forged checks or intercepted electronic payments.

• System Takeover: Attackers gain access to treasury’s bank portals or Treasury Management System (TMS) through stolen credentials or malware to initiate payments directly.

• Data Breach & Espionage: Theft of confidential financial data, such as merger plans or bank account details, used for competitive advantage or to enable further fraud.

A Practical Defense Framework: The Three Lines of Control

Effective protection requires layered defenses across people, processes, and technology.

Essential Actions for Incident Response

A prepared treasury department has a plan that is rehearsed:

1. Immediate Containment: Designated staff must know how to immediately contact banks to stop payments and freeze compromised accounts.

2. Preserve Evidence: Isolate affected systems without shutting them down to preserve forensic data. Document all steps taken.

3. Activate the Team: Have clear contacts for internal legal, communications, and external cybersecurity forensic experts.

4. Communicate with Precision: Follow a pre-defined protocol to inform senior management, law enforcement, and insurers without causing unnecessary public alarm.

In practice, treasury’s role is to build a culture of controlled skepticism. Every payment instruction, especially those requesting urgency or secrecy, must be verified. By embedding these controls into daily routines, treasury moves from being a vulnerable target to a secure guardian of corporate value.