Cybersecurity and Fraud Protection
Payments Fraud Activity Surged in 2018
According to the Association for Financial Professionals’ 15th annual Payments Fraud and Control Survey, payments fraud is becoming increasingly pervasive. Fraudsters are highly focused on infiltrating payments technology. While technology advancements can optimize and simplify processes, they can also provide a means for perpetrators to attack payment methods, commit financial crimes and inflict extensive damage. Learn how businesses are protecting themselves.
Payments Fraud Sets Record High for Third Year Straight
The last four years of the survey have recorded a dramatic increase in payments fraud activity. Last year saw the highest rate on record, with 82 percent of financial professionals reporting that their companies were targets.
Larger Organizations at Higher Risk of Attacks
Annual Revenue Less Than $1 Billion
Annual Revenue At Least $1 Billion
Check Fraud Drops Slightly, but ACH Fraud Increases
Though checks and wire transfers continued to be the largest targets for fraud, the percentage of these scams decreased. On the other hand, fraudulent ACH debits and credits increased—an indication that fraudsters are developing more sophisticated attacks, as ACH transactions are often more difficult to compromise.
Fraud by Payment Type
Email Scams Grow More Sophisticated
Business email compromise (BEC) targets businesses and individuals responsible for initiating payments. Eighty percent of organizations were exposed to BEC scams in 2018—the highest number on record.
BEC tactics continue to evolve, but respondents reported the following common attacks by fraudsters:
81% Using spoofed email addresses to pose as senior executives directing a transfer of funds
44% Impersonating vendors in emails, directing payments based on authentic invoices
33% Pretending to be other third parties in emails, requesting changes in bank account, payments instructions, etc.
Other ways financial professionals are protecting their companies include:
use Positive Pay to verify the authenticity of checks
perform daily reconciliation of check activity
perform daily reconciliation of ACH debits