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April 10, 2019updated 12 Apr 2019 1:57pm

AFP study reveals rise in payment fraud

Eight two percent of organisations faced payment fraud in 2018, with large organisations found to be more affected, according to the 2019 AFP Payments Fraud & Control Survey.

The study, underwritten by J.P. Morgan, polled over 600 treasury and finance professionals.

For businesses generating more than $1bn in revenue, fraud was found to increase seven percentage points to 87% on a year-on-year basis.

However, for business generating less than $1bn in revenue, fraud attempts dropped to 69% in 2018 from 73% in 2017.

Moreover, the percentage of companies reporting Business Email Compromise (BEC) fraud increased to 88% last year.

Fifty four percent of firms were found experiencing financial losses owing to BEC.

In comparison, 77% of organisations experienced BEC fraud in 2017.

Besides, 70% of organisations reported check fraud in 2018.

This marks a slight decrease from the 2017 figure.

On the other hand, fraud through ACH debits and credits increased in 2018.

Thirty three percent of organisations faced ACH debit fraud in 2018, versus 28% in 2017.

Besides, 20% of organisations reported ACH credit fraud last year.

In 2017, the percentage of organisations experiencing ACH credit fraud was 13%.

AFP President and CEO Jim Kaitz said: “Payments fraud is a persistent problem that is only getting worse despite repeated warnings and educational outreach.

“Treasury and finance professionals need to learn the latest scams and educate themselves—and perhaps more importantly—their work colleagues on how to prevent them.”

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