Hartford Business Journal

26 HARTFORDBUSINESS.COM | NOVEMBER 3, 2025 Cyber and fraud incidents are the new normal: Are you prepared or vulnerable? S P O N S O R E D C O N T E N T Banking products and services are offered by KeyBank National Association. All credit, loan and leasing products subject to credit approval. ©2023 KeyCorp. KeyBank is Member FDIC. 220315-1508958 We have fresh ideas to move your business forward. I n a recent KeyBank survey of owners and executives of U.S. businesses, data shows seven in ten companies polled reported experiencing a cyber or fraud incident in the past year. The question is no longer if you will be targeted. Rather, the question is: "Are you prepared?" The unfortunate reality is that cyber and fraud threats have become a part of the everyday business landscape. As a result, balancing risk mitigation with business continuity has become a day-to-day operation. Prepare for the inevitable Collaboration is critical. Even a small disconnect between a business unit (i.e., finance) and IT can lead to large consequences: operational slowdowns, reputational hits and shaken customer confidence. These attacks go beyond technical headaches. Phishing, data manipulation and identity theft can strike the systems that power financial reporting, cash flow visibility and investor confidence. When those systems are compromised, the impact is immediate and often expensive . That's why protecting against cyber and fraud threats has fast become a strategic priority. Cross-functional alignment, a culture of accountability and investments in controls and training aren't just defensive moves anymore. They're key drivers that help protect value and position your business to respond with speed and clarity when it matters most. Identify points of attack Among the most common fraud incidents, phishing and email spoofing (33%) lead the way, followed closely by data corruption (32%) and identity theft (24%). And in the spirit of what is old is new again, physical mail theft and check alteration is on the rise —23% of surveyed leaders reported incidents between July 2024 and July 2025. These patterns are important to be aware of. They should influence how you prioritize cybersecurity investments and shape your response strategies. For example: criminals are smart at finding weak links, and paper checks are a weak link. The risk is especially high in environments where paper checks are still part of routine disbursements. To combat this, more companies are accelerating the shift to digital payments, tightening reconciliation practices and equipping staff to spot red flags before fraud occurs. Protect for long-term resilience For many businesses, cybersecurity is about more than avoiding theft. It's about protecting liquidity and ensuring financial operations are strong in a high-threat landscape. The following are some cybersecurity points of emphasis: • Anti-virus protection and anti-malware on all business computers • Implementation of multi-factor authentication • Strong password requirements • Unauthorized device (i.e., USB sticks) prevention • Managed detection response (MDR) to monitor computer environments • VPN access for out-of-network users • Dual authorization for outgoing payments • Documented security policies and procedures Each of these measures are important and effective, but basic controls and technology aren't always enough. A foundational gap remains with employee training. Cyber threats like phishing and social engineering are designed to manipulate human behavior. Every employee needs to understand their role in protecting the business. Clear, written policies and regular training are frontline defenses against costly breaches. In an environment where just a single misstep can lead to financial loss, reputational damage and operational disruption, investing in employee awareness is a must. It's a strategic move that strengthens internal controls, reinforces accountability and helps ensure your business is protected from the inside out. Any opinions, projections, or recommendations contained herein are subject to change without notice, are those of the individual author(s), and may not necessarily represent the views of KeyBank or any of its subsidiaries or affiliates. This material presented is for informational purposes only and is not intended to be an offer, recommendation, or solicitation to purchase or sell any security or product or to employ a specific investment or tax planning strategy. Non-Deposit products are: NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY | KeyCorp ©. 2025 | CFMA #250604-3259028 By: Matt Hummel, Market President and Commercial Banking Executive, KeyBank About the Author: Matt Hummel is Market President and Commercial Banking Executive for KeyBank in Connecticut and Western Massachusetts. He may be reached at matthew_e_hummel@keybank.com.

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