Do you know how to build a resilient organization, ready to handle the growing threats of payment fraud?
Payment fraud risk is a very real threat to organizations. One slip-up in processing an ACH or wire transfer could cost millions of dollars and result in significant embarrassment for finance teams. If you have money and secure data, no matter your company size or industry—you are at risk.
What is Payment Fraud?
Payment fraud is any type of false or illegal transaction by a cybercriminal. It’s important for finance professionals to understand what motivates people to commit payment fraud so they can better assess risk and assist in implementing preventative and protective measures.
Despite the significant efforts being made by the financial services industry, risk and fraud mitigation vendors, and the global law enforcement community, merchants are reporting that their fraud losses have risen in the past year.
According to an Experian blog that highlighted its 2019 Global Identity and Fraud report, which surveyed 1,000 businesses in 21 countries, over half of businesses reported that their fraud losses had grown in the past 12 months compared to a year earlier. Additionally, 27% of businesses stated that losses had stayed the same over the same time period.
Additionally, in a recent Kroll survey, 84% of financial professionals surveyed reported at least one incident of payment fraud, which is up from 82% reported in 2016 and 61% reported in 2012. On top of that 86% of respondents reported at least one cyber incident or information data theft, loss, or attack within the last twelve months.
Recent Payment Fraud Incident
Manor Independent School District in Texas recently fell victim to a phishing scam that cost millions. Phishing scams are emails designed to trick users into handing over personal information. The school district is expected to recover at least, and more of the stolen money could be recovered as the investigation into the scam continues.
“Manor ISD has developed additional internal security protocols with a variety of training and testing efforts designed to continually educate staff, which assure that the protocols are being followed,” the ISD said in an updated statement. It added that police are continuing to chase down leads “in order to bring this case to a swift and legal conclusion.”
How can you protect your organization against payment fraud risk?
Paymerang partnered with Kaplan, one of the world’s largest and most diverse education providers, to share more about the risk of payment fraud. During the video, Paymerang CEO, Nasser Chanda, addresses the risk of payment fraud and what organizations can do to shield their organizations from fraud.