Business payment fraud at an all time high
Posted on September 26, 2017
Teipen Selanders Poynter & Ayres business clients, take note! Business organizations are vulnerable to payment fraud attacks more than ever before, according to a recent study commissioned by JP Morgan.
Check fraud and business email compromise are both on the rise. Nearly three-quarters of corporate treasury and finance professionals said their companies were victims of payment fraud in the past year, according to the new study. This is the highest percentage since the survey began in 2005, and comes after a dramatic increase in 2015.
“Unfortunately,” say JP Morgan representatives, “with advancements in technology come more opportunities to take advantage of payment fraud. Checks continue to be the most popular method for committing payment fraud. In fact, a full seventy-five percent of organizations that were victims of payment fraud in 2016 experienced check fraud.”
Important study findings:
- 74% of survey respondents said their organizations were victims of business email compromise in 2016. That’s a 10% increase from 2015.
- 63% of payments fraud attempts were made by outside individuals
- Over 70% of corporate treasury and finance professionals are “hesitant” about adopting mobile payments as they question the security of this payment method.
- 70% of business organizations are being proactive and have implemented controls to prevent business email compromise.
There are no quick fixes, as technology, cyber attacks and new security breaches are being detected all the time.
“All the more reason why business leaders should take preventive measures to educate their staff and equip systems before an attack hits,” say TSPA CPAs. “There are resources available to help prevent online fraud and if attacked, minimize the damage.”
According to the JP Morgan study, companies that offer mandatory training for all employees, particularly around cyber security, and that have a plan to respond to payment fraud will fare better than those that do not.
Our CPAs work hard to help you protect your business and personal assets. Prepare now. With three quarters of companies experiencing fraud in 2016, before you are attacked is the best time to prepare and protect assets and data from cyber fraud.