Payment fraud just spiked to a new high, which means making sure company money stays where it belongs is more work for your finance team than ever before. A staggering 82% of companies said they were affected last year, according to the 2019 AFP Payments Fraud and Control Survey.
It’s a given you encourage your team to stay vigilant and take measures to prevent fraud. But with the odds looking even scarier now, additional action may be necessary.
What your team should do
Here are the key highlights from the AFP report and advice on how your team can better address these security concerns:
1. Email fraud on the increase. Business email compromise (BEC) scams have been on the rise for a while now. But for the first time, the amount of monetary loss increased, too: 80% of companies were hit, and 54% of those incurred real financial loss from those attacks.
You likely already train your team to spot BEC scams before any money’s transferred. But fraudsters’ efforts are getting more advanced and employees are still being duped.
So, in case anyone at your company does fall victim, ensure your company has a step-by-step plan ready. That may include contacting your bank, insurance company, local law enforcement, etc. It also doesn’t hurt to review your insurance policy to verify it fully addresses these cases.
2. Targeting “safer” payments. Thanks to faster payments and new advancements, it’s easy to see why so many companies love Automated Clearing House (ACH). Unfortunately, bad actors have noticed this, too.
ACH fraud increased significantly last year. Specifically, the percentage of companies that encountered ACH credit fraud jumped to 20% (from 13%), and those who experienced ACH debit fraud rose to 33% (from 28%). In addition, 25% of companies haven’t gotten advice from their banks on mitigating ACH risks.
That being said, your team must prioritize working and communicating with your banking partners to avoid fraud, especially as ACH changes and advancements continue. You can also check out a variety of fraud prevention resources straight from NACHA.
3. More controls equal better business. The growth of new technology has pros and cons. On the one hand, it can give your finance team new ways to protect payments. On the other hand, it helps fraudsters find fresh, creative ways to try and trick your team.
So, how can you best use technology to your advantage? When companies have a “variety of protective measures,” bad actors get frustrated and will likely move on to other, easier targets, AFP points out.
Look to add extra layers of security to your computers and payments process anywhere you can – from basics like two-factor authentication and password security to more robust automation.