Fraud is a significant threat, and new trends are emerging. Fraud remains a major problem:

• 71% of organizations report having been victims of payments fraud attacks¹
• 30% Roughly 30% of companies saw an uptick in payments fraud in 2021¹

These types of fraud are increasing and intensifying:

• Identity theft, stolen credentials, spoofing and other digital payment fraud schemes
• Business email compromise
• Social engineering

Actions to mitigate fraud:

• Strengthen your analytics and controls

 Data lake
 Proactive and reactive measures
 Regularly look at anomalies – uncover undetected patterns

• Expose and block vulnerabilities
• Execute best practices Implement due diligence
• Educate staff regularly
• Stay current with fraud trends

Fraudsters are innovating around digital payments

As settlement speeds accelerate, new fraud types will emerge, creating a need for corresponding fraud prevention tooling for Real Time Payments (RTP)

ACH debit and credit fraud attacks are rising

• 37% of financial professionals reported fraud attacks via ACH debit¹
• 41% of organizations report ACH credits were impacted by business email compromise¹

Tips to block same-day ACH debit and credit fraud:

• Maintain and promptly enforce ACH debit policies and procedures
• Conduct daily reconciliations vs. monthly
• Use ACH debit filters/debit blocks
• Update company IDs for filters on a timely basis
• Hold an independent review of the processes done by internal audit

Social engineering is a growing challenge

A trend on the rise

• 35% reported increased concern around identity theft and social engineering¹

  A 14% increase over the 2021 report¹

• COVID-19 created widespread panic and fear that helped bolster this type of fraud

Avoid social engineering:

• Don’t click links from unsolicited text messages or emails
• Only use a company phone number that is verified using a company directory or by calling the requestor directly
• Educate staff on how to identify a social engineering scam

Business Email Compromise remains a substantial threat

In 2021, BEC was the source of the majority of payments fraud attempts and attacks

• 55% of companies experienced actual or attempted payments fraud because of BEC¹
• 58% of respondents indicated their AP departments were compromised through email scams¹

Top ways you can combat BEC:

1. Implement company policies for providing appropriate verification (e.g., contact information from a system of record) before making any changes to existing information

• Invoices
• Bank deposits
• Contact details
• Authentication of the party (both consumer or commercial) prior to execution of a “net-new” or “net-change” of data

2. Confirm requests for any transfer of funds by executing a callback to an authorized contact at the payee organization using a phone number from a system of record

3. Use real-time tools in order to detect both mismatches from expected counterparty information while simultaneously authenticating the counterparty wherever possible

Educate employees on BEC threats and how to identify email scams

Fraud mitigation components must work together to battle these ongoing and emerging threats.

• Build and maintain awareness
• Utilize monitoring and reporting tools
• Practice constant vigilance
• Identify vulnerabilities and close gaps
• Ensure policies and procedures are agile and responsive