With business interruptions to our current environment, it has become increasingly important to be cautious in our daily activities. This is especially true when it comes your business - knowing how prevalent payments fraud is can help mitigate the risk of becoming a target. Respondents to the Association of Financial Professionals (AFP) 2020 Payments Fraud and Control Survey Report shared that:
It’s no longer a matter of “if,” but rather “when” payments fraud will impact your business. As if the general statistics above aren’t alarming enough, the AFP recently released a special report, Impact of the COVID-19 Pandemic, in which they shared ways businesses are mitigating their risks:
Unfortunately, many businesses discover the hard way that paper checks are not secure and therefore, are easily compromised. As fraudsters continue to attack a company’s payment systems, it’s imperative to not be complacent and take necessary preventative measures. When it comes to making check payments, businesses report using the following tools and processes:
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In addition to fraud prevention tools, it’s just as important to implement controls. Doing so with guidance on best practices can help companies in their efforts to combat fraud effectively. Although many believe putting safeguards in place is complicated, the report shows us that over half of businesses feel otherwise, and in fact, have recently strengthened their controls:
Businesses can gain peace of mind, mitigate the risk of fraud and potentially avoid financial loss by making a few changes to protect their payment process. At a time when scammers are taking advantage of unprecedented weaknesses, just a few precautions can make all the difference.
Association for Financial Professionals: 2020 Payments Fraud and Control Survey Report
Association for Financial Professionals: 2020 Impact of the COVID-19 Pandemic
As with all serious financial topics or decisions, be sure to consult with a trusted financial advisor beforehand. The content here is for educational purposes only, and is not meant to serve as any sort of advice or endorsement.