According to the recent 2017 Payments Fraud & Control Survey, 75 percent of U.S. companies became the target of payments fraud in 2016 with 75 percent of that fraud taking place through paper checks. Wire transfers were the 2nd most frequently targeted payment method, and corporate credit cards accounted for the 3rd largest share of reported payments fraud.
Criminals continue to develop new and innovative tactics for scamming businesses, but good old-fashioned check fraud is still alarmingly prevalent. It’s actually the new and emerging technologies that are making check fraud even easier for these evolving offenders. In fact, paper checks and wire transfers are the major targets of business email compromise (BEC) scams with reports of wire fraud increasing from 5 percent in 2009 to 48 percent in 2015! These numbers are not only disturbing but reinforce the increased frequency and effectiveness of payments fraud.
Despite ill-perceived risks, there are many tools that can effectively eliminate your exposure to check and wire transfer fraud.
Although 2016 shows the highest level of payments fraud since 2006, over 70 percent of corporate finance professionals are still hesitant about adopting mobile payments and automated payments solutions because of concerns over security. In certain cases, businesses are even willing to risk exposure to payments fraud because they fear the costs associated with a fraud attack will be lower than the cost of investing in new automated payments solutions.
Despite ill-perceived risks, there are many tools that can effectively eliminate your exposure to check and wire transfer fraud.
Problem vs. Solution
While many different options are available to streamline payments, organizations typically end up using the tools that they’re most comfortable with and which they perceive to be the simplest and safest. Contrary to popular belief, these tools – paper checks and ACH payments – are not only leaving businesses vulnerable to fraudulent acts but also creating higher processing costs, late payments, and missed discounts that often add up to millions of dollars each year.
Accounts payable automation and virtual credit cards are the most current and secure solutions to the problem of B2B payments fraud. By automating the payments process and implementing single-use virtual credit cards, organizations can reduce the risk of fraud, ensure employee compliance to corporate spending policies, increase revenue, and streamline expense reporting for managers.
By automating the payments process and implementing single-use virtual credit cards, organizations can reduce the risk of fraud.
Electronic accounts payable platforms reduce the reliance on manual methods that are highly exposed to scammers and shift much of the processing tasks to automated software monitored and managed by experienced solutions providers. Fraud detection and compliance guidelines are built-in to these payment solutions thereby saving valuable corporate resources.
Accounts payable automation and virtual credit cards are the most current and secure solutions to the problem of B2B payments fraud.
CSI globalVCard provides a full array of corporate payment solutions and customer support for commercial cards, including fleet fuel, travel, purchasing, ghost, and single-use virtual cards. These solutions automate B2B payments and effectively diminish check fraud, augment spending compliance and allow managers to reconcile accounts by employee, trip, department, or job. All CSI globalVCard solutions securely integrate with ERP systems and are PCI-DSS compliant, SOC certified, and MasterCard Service Provider (MSB) registered, which means the regulatory requirements defined by issuing banks are met and the most secure environments for customers and financial partners are delivered.
