With the rise of technology increasing, it’s become easier for outside parties to infiltrate businesses by fraud, along with those who are insiders to the company. This is why fraud detection tools are essential for the modern corporate, as they’ll help you maintain security across your operations.
Since 2014, there has been a dramatic increase in wire fraud, a result of an increasing number of business email compromise (BEC) scams. The number of organisations exposed to BEC has been increasing each year, with 77% of businesses having experienced at least one instance of fraud. Frauds involving cheques has increased dramatically as well, with the percentage rising from 71% to 74% between the years 2015 and 2016, which is why it is more important now than ever to protect yourself.
AccessPay’s Detect is a fraud detection system that scans payment files for transactions that are atypical for your organisation, alerting you to any potential risks. In brief, Detect alerts you to threats before they’ve occurred, saving your company time and money. This post will inform you of the risks of fraud, and why it is essential your company has fraud detection.
What is Business Email Compromise?
BEC is a scam that targets businesses working with foreign suppliers and businesses that perform wire transfer payments regularly. This includes email account compromise (EAC) which targets individuals that perform wire transfer payments. This occurs when the scammer compromises the business email account through social engineering or computer intrusion to submit and conduct unauthorised transfers of funds. Victims report using wire transfers commonly when transferring funds for business purpose. Some places, of course, still use cheques as a common method of payment. This does not protect you from fraud, unfortunately, with fraudsters using methods most commonly associated with your business in an attempt for the transaction to go unnoticed.
Benefits of fraud detection
Over the last decade, payment fraud has fluctuated, with a steep increase every year since 2014. It is important for companies to be aware of this, with 78% of finance professionals reporting their company experienced payment frauds in 2017, the largest percentage on record.
Who are fraudsters?
Fraudsters are outside individuals who steal money from companies via forged cheques, stolen cards, and business email compromise. This gives them the power to compromise security, access your companies banking information and take money, or even the information of your employees.
How much does it cost the company?
92% of companies contacted reported that fraud attacks cost them no more than half a percent of their total revenue. A further 8% reported the impact of fraud on their organisation revenue ranged from 0.5% to 1.5%, depending on the method and how long it takes them to realise they have been compromised. This can be prevented by using fraud prevention and detection tools.
How can fraud detection help?
Fraud detection protects you by highlighting any suspicious transactions that occur. 47% of companies said it took them under a week to detect fraud, with a further 21% reporting it took them between one to two weeks. With fraud protection, any issues will be identified and stopped before they occur, preventing any loss to your revenue and fraudsters being able to easily infiltrate your business.
With the rise of fraud, it is more essential now than ever to make sure your company has robust security measures. Detect is here to defend you before it happens, saving your business time and money. Contact AccessPay on 02038116296 for more information on how to protect yourself from fraud.
This article was about: security