Payments Fraud Plays No Favorites: Your Company Is Not Immune
According to the 2017 AFP Payments Fraud and Control Survey1, seventy-four percent of companies surveyed were victims of actual or attempted payments fraud in 2016. This represents the largest percentage ever reported by the AFP relative to their annual payments fraud and control survey. Furthermore, 36% of companies reported an increase in the incidence of payments fraud in 2016 relative to 2015.
Companies that leverage checks as their primary payment might think that the risk they face relative to payments fraud as check fraud is on the decline, but that is just not true. The following graph, courtesy of the 2017 AFP Payments Fraud and Control Survey1, shows that fraudsters do not discriminate based on payment type.
In fact, despite the increased attention given to business e-mail compromise (BEM) scams, checks continue to be the most common payment type targeted by fraudsters by almost 20% compared to the next most payment method targeted by fraudsters.
Furthermore, fraudsters do not discriminate based on company size. The following graph clearly supports this assertion. Whether you are a small company or a Fortune 100 company, you need to mitigate risk exposures associated with each type of payment you leverage.
Accounts payable teams are short staffed and overworked at companies of sizes, fraudsters know this, so they have no reason to discriminate relative to company size as to which companies they target. Fraudsters also know that to really combat payments fraud means that companies need to invest in educating employees and investing in technology to stop them, and most companies will not see the ROI in making such an investment. It also important to note that most companies who experienced attempted payments fraud were threatened on more than one payment types. Many experienced both attempted check fraud and some form of electronic payment fraud.
1 – 2017 AFP Payments Fraud and Control Survey