Cryptocurrency, a form of digital payment that can be spent or traded online for goods and services, is still a relatively new concept. As such, it’s perceived value as both a medium for financial exchange and a potential investment changes frequently. But with the often-astounding value a single token or cryptocurrency exchange can have, keeping cryptocurrency secure remains a static concern for security professionals monitoring its maturation.

For most traditional businesses, the COVID pandemic has impacted operations significantly, the most relevant example in the crypto discussion being banks and other financial institutions. However, we’ve also seen online and ecommerce businesses like Amazon benefit greatly. Crypto occupies a unique place in the economy because, while a digital currency, its handling often remains a protected physical asset.

During COVID, our team has seen an increase in marketplace awareness about Crypto. And while the data is still murky on an increase in usage, every security professional is acutely aware that with an increase in awareness comes an increase in the potential for theft or fraud. We had a chance to speak with Brad Moody, Executive Vice President of Operations for Lowers & Associates, about the current state of Crypto in 2020, including how companies are securing Crypto exchanges during COVID, the adaptations they’ve made, as well as some current trends.

“Interesting enough, there’s a growing appetite for the working from home aspect,” he said. “Normally, it’s almost like a boiler room type of thing, but now these companies are trying to get out of real estate to be very minimal while also still be able to perform the same transactions at a very high level maintaining security. We’re starting to see that quite a bit. When you start with a highly secure location, though, what happens when that goes away?”

In today’s Coffee Break, Brad explains why it’s important to understand what companies can do to maintain that integrity from the outside in.

All organizations are vulnerable to occupational fraud, and that fraud costs an enormous amount of money ($652 billion a year in the US according to ACFE research as summarized in this occupational fraud infographic).  As a result, a comprehensive fraud risk management policy is an essential component of an overarching enterprise risk management plan.

Your fraud risk management policy stems from the risk analysis that must underlie the policy.  That is, identifying the concrete organization-specific fraud risks that must be mitigated.

Systematic planning and implementation across these five basic areas will put your fraud risk management program on the path to success.

1. Identify a “risk owner” in your organization.

Upper management must be engaged in policies aimed to mitigate risk.  Part of this is that responsibility has to be clear – wishful groupthink won’t cut it.  With respect to fraud risks in particular, a member of upper management should be charged to organize and carry out the risk analysis, including how identified risks should be managed.  As with every important management function, this function will include process definition, goal setting, measurement, and reporting on a timely basis. … Continue reading