We were proud to participate in the National Association of State Comptrollers (NASC) virtual conference. Paymerang CEO, Nasser Chanda, joined Mark Merry, CPA, Assistant Director, Department of Financial Services, Division of Accounting and Auditing, at State of Florida and Jim McClurkin, Director, Public Sector at SAP Concur on a panel to discuss electronic payment fraud management.
Payment fraud risk is a very real threat to organizations—and is at an all-time high. Moreover, it’s not just your checks that are at risk. Fraudsters are using new tools and sophisticated schemes to infiltrate electronic payments to suppliers. One error in processing an ACH or wire transfer could cost millions of dollars and result in significant embarrassment for finance teams.
Checks are the least secure payment method. Checks can easily be intercepted, white-washed and cashed, leaving buyers with the expense of investigation, the cost to re-issue checks, and losses.
But that doesn’t mean that paying suppliers electronically is without risk. Automated Clearing House (ACH) debit fraud is at all-time peak and shows no signs of slowing down. What’s more, ACH credit fraud has increased steadily since 2012, and business email compromise (BEC) attacks have resulted in significantly higher levels of wire transfer fraud. These sobering stats are from the Association of Finance Professionals’ (AFP) 2019 Payments Fraud and Control Survey.
The good news is there are safeguards and best practices that can help organizations mitigate their fraud risk.
To learn more about Electronic Payment Fraud Management check out the NASC presentation recap here.