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October is National Cybersecurity Awareness Month, a time to shine a spotlight on the importance of online safety.
The entertainment industry, with its ever-flowing cash flow and valuable intellectual property, can be a prime target. Whether you're a seasoned producer or a rising star accountant, it's crucial to stay vigilant against cyber threats.
This Cybersecurity Awareness Month, let's go beyond the rigors of production, and delve into the critical topic of how to prevent fraud. In the coming sections, we'll explore practical tips you can implement to safeguard your production company or freelance business from internal financial fraud.
We'll also discuss how to strengthen your digital defenses and create a culture of cybersecurity awareness within your team. Remember, preventing fraud isn't just about protecting your bottom line—it ensures the smooth running of your production and the security of your creative assets.
This National Cybersecurity Awareness Month, think about one of our nation’s pastimes: baseball. The MLB famously prohibits its players from betting on professional baseball games. This rule was put in place to prevent any conflicts of interest that could compromise the integrity of the sport.
Similarly, in the entertainment industry, it’s crucial to avoid situations where employees might have a personal interest in manipulating financial data or transactions. That's where segregation of duties becomes a vital safeguard in how to prevent fraud.
This principle means dividing financial tasks amongst different individuals. For example, the person who initiates a wire transfer shouldn't be the same person who approves it. This creates a crucial layer of oversight, as one person can't easily manipulate records or misappropriate funds.
Think of it as casting multiple roles in your production. The casting director wouldn't also be the one writing the checks for talent, right? Similarly, separate individuals should handle tasks like authorizing payments, reconciling accounts, and processing payroll.
Segregation of duties can be particularly important in smaller production companies where team sizes are limited. Even if you have a lean team, consider outsourcing some tasks—like payroll processing—to external vendors.
This adds another layer of security and prevents one person from having too much control. Implementing these practices, even on a smaller scale, can significantly reduce the risk of fraud and ensure your production finances remain transparent and secure.
Think of your company's finances as a complex set filled with intricate details and expensive equipment. Just as a skilled stage manager needs to conduct regular checks to ensure everything is functioning properly, it's vital to have a system in place to scrutinize your financial records.
This is where regular auditing comes into play during Cybersecurity Awareness Month.
Here's the key: these audits shouldn't be a one-time performance during Cybersecurity Awareness Month.
Schedule frequent, independent reviews by qualified professionals to systematically examine your financial records and processes. Pending the cadence to which your company can consistently adhere, consider arranging for a semi-annual or annual audit. These independent eyes act as a powerful deterrent against fraud by exposing any discrepancies or vulnerabilities.
Consider this Cybersecurity Awareness Month 2024 an opportunity to beef up your audit practices. Regular audits give you peace of mind and send a clear message that financial transparency and security are top priorities in your business.
Don't be afraid to shine a light on your financial records now and beyond National Cybersecurity Awareness Month. It's the best way to identify and address any potential issues before they snowball into major problems. Remember, proactive measures are far more effective (and less expensive) than dealing with the aftermath of fraud.
A well-run production needs a solid foundation. Just as you'd have a detailed script and production schedule, your financial operations require clear policies and procedures.
This Cybersecurity Awareness Month is a reminder to focus on establishing those policies and procedures, especially for crucial areas like accounting and payroll.
Think of these policies as a rulebook for handling financial transactions within your company. They should outline clear guidelines for everything from expense approvals to vendor payments.
Robust accounting protocols include procedures for handling purchase orders, reconciling bank statements, and documenting all financial activity.
Similarly, payroll protocols should define clear processes for verifying employee identities, authorizing time cards, and securely distributing payments.
Cybersecurity Awareness Month 2024 is the perfect time to revisit and strengthen your existing policies. Make sure your procedures are documented, readily accessible to all staff, and regularly reviewed for any potential weaknesses.
Remember, clear and well-defined protocols not only deter fraud but also empower your team to handle financial matters with confidence.
Hiring an unprofessional actor—for instance, someone who always forgets their lines, or tries to rewrite the script entirely—can bring down an entire production. . Financial security is a serious business and entrusting sensitive data requires careful casting as well.
This Cybersecurity Awareness Month, consider the importance of conducting background checks on personnel handling financial transactions within your company.
Background checks act as a safety net, verifying the integrity and qualifications of staff members entrusted with financial information. These checks can reveal past criminal records related to fraud or embezzlement, providing valuable insight into a candidate's financial history.
While regulations regarding background checks can vary by location, Cybersecurity Awareness Month 2024 serves as a timely reminder to review your existing practices and ensure you're taking proper steps to protect your valuable assets.
Remember, background checks are not a guarantee, but they are a powerful tool in your anti-fraud arsenal. Implementing these measures demonstrates a commitment to responsible financial management and discourages anyone considering malicious activity.
Think of it as casting the perfect team while also safeguarding your production's financial well-being.
What if your company was in charge of producing the next Marvel movie—the one with the top-secret script pages. Wouldn't you take all necessary precautions to ensure those pages remained confidential and out of the wrong hands?
Financial documents deserve the same level of protection. This Cybersecurity Awareness Month, let's address the importance of securing documentation and safeguarding sensitive financial information.
Proper storage and protection of vital paperwork are critical components of any robust financial security strategy. This includes everything from invoices and receipts to contracts and bank statements.
Consider investing in secure filing cabinets or document management systems to ensure physical protection of your hard copies. For digital documents, implement strong password protection and access controls, restricting access only to authorized personnel.
Cybersecurity Awareness Month 2024 is a great opportunity to audit your current documentation practices. Are confidential files readily accessible or properly secured? Are digital documents encrypted and password-protected?
Remember, even seemingly mundane documents like expense reports can be exploited by fraudsters. By taking proactive steps to secure your financial documents, you significantly reduce the risk of unauthorized access and potential misuse of sensitive information.
It's like safeguarding your production's script—essential for maintaining a smooth, secure financial performance.
There’s nothing more satisfying in a film than watching the brave hero outwit the evil villain. In the real world of entertainment finance, your digital security measures are the heroes protecting your financial data.
This Cybersecurity Awareness Month, let's explore some crucial digital tools to fortify your defenses.
First, consider utilizing secure accounting software. These programs often incorporate advanced security features like access controls, user permissions, and audit trails. These features provide a clear picture of who accessed what information and when, allowing for quick detection of any suspicious activity.
Furthermore, enable two-factor authentication (2FA) wherever possible. This adds an extra layer of security by requiring a secondary verification code in addition to a username and password. Imagine it as needing a fingerprint scan on top of a key card to access the vault!
Finally, encrypt sensitive data like bank account details and social security numbers. Encryption scrambles the information, making it unreadable to anyone without the decryption key. It’s like the hero's secret code that renders the villain's hacking attempts useless.
Cybersecurity Awareness Month 2024 is the perfect time to take stock of your digital security practices. Investing in secure software, enabling 2FA, and encrypting sensitive data are essential steps in building a robust cybersecurity defense.
Financial transactions within your production company deserve safeguards. This Cybersecurity Awareness Month, consider implementing a system of multi-level approval for critical financial decisions.
Multi-level approval requires authorization from multiple individuals before large transactions or unusual activity can be processed. This creates a crucial safety net; any fraudulent activity attempted by a single person would likely be flagged by another authorized reviewer.
Many significant financial decisions and transactions require multi-level approval, such as wire transfers, stock trades, and loan approvals. This widely-used approach significantly reduces the risk of a single employee manipulating financial records or diverting funds without detection.
Cybersecurity Awareness Month 2024 is a perfect opportunity to review your existing approval processes. Do you have clear guidelines for the types of transactions requiring multiple approvals? Are the appropriate individuals authorized to provide these approvals?
By establishing a multi-level approval system, you create a powerful deterrent against fraud, ensuring every financial move goes through the proper channels and receives the necessary oversight.
Picture a complex film shoot with a meticulously detailed budget breakdown. Everyone involved—from the director to the production assistants—needs a clear understanding of how funds are allocated and spent.
Financial transparency is just as crucial in your production company. This Cybersecurity Awareness Month, let's highlight the importance of providing transparent reporting to stakeholders.
Regular, detailed financial reports offer a powerful tool for identifying and deterring fraud. These reports should include clear breakdowns of income and expenses, along with explanations for any significant variances from budget projections.
By keeping stakeholders informed, you create a system of accountability and empower them to identify potential red flags. Imagine a producer receiving a report with an unexplained spike in a specific cost category. his transparency allows for prompt investigation and potential mitigation of fraud.
Cybersecurity Awareness Month 2024 serves as a timely reminder to review your current reporting practices. Are your financial reports clear, concise, and accessible to authorized personnel? Do they provide enough detail to allow for informed decision-making?
Implementing consistent and transparent reporting builds trust with your stakeholders and strengthens your overall financial security posture.
Think of it as keeping everyone on the same page, ensuring financial information is readily available for scrutiny and fostering a culture of open communication that discourages fraudulent activity.
Remember, your team needs ongoing education to stay vigilant against fraud. National Cybersecurity Awareness Month is the perfect time to emphasize the importance of training and education to your staff.
Regularly update your team on the latest fraud prevention best practices. This includes educating them on common scams targeting the entertainment industry, teaching them how to identify suspicious activity, and reinforcing proper cybersecurity protocols.
A well-trained team is better equipped to recognize red flags and prevent fraud before it occurs.
Beyond basic cybersecurity practices, keep your staff informed about industry developments. Scammers constantly adapt their tactics, so staying up-to-date on emerging threats allows for a proactive approach.
By keeping your team informed of the latest fraud trends, you empower them to stay ahead of the curve and protect your company's financial security. Invest in training and education, It's a powerful investment in your team's knowledge and a significant deterrent.
During National Cybersecurity Awareness Month, let's remember that preventing fraud requires a multifaceted approach. By implementing these strategies—from segregating duties to conducting regular audits and providing comprehensive training—you can significantly strengthen your entertainment business's defenses.
To learn more about the measures Wrapbook employs to secure the data of our customers and additional tips to protect your company and projects, check out our article on digital security for productions.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Daniela Bailes is a working film and television writer whose work travels across genres. A proud alumnus of the Yale Writer’s Conference in New Haven, she was mentored by literary luminaries before being selected for the National Hispanic Media Coalition TV Writer’s Program, a feature writer on the Latinx Black List, and as a participant in the Sundance Episodic Lab. Her most recent work was staffing on the upcoming Paramount science-fiction series, The Shift, also selling a feature script to A+E Networks.
