Fraud Protection

Payments Fraud Hits Record Highs

The 2016 AFP Payments Fraud and Control Survey found that payments fraud continues to impact a growing number of organizations—and criminals’ strategies are increasing in complexity. Find out how you can protect against payments fraud.
April 27, 2016
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0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100 Attempts Down, Losses UpThe 2014 Association of Financial Professionals Payments Fraud Survey asked 5,644 financial professionals about their experiences with fraud in 2013, from risk mitigation to prevailing schemes to damages. attempts are more successful The percentage of businesses facing losses has increased in the last three years and the average loss has been trending upward. Corporate card fraud saw a major spike in losses. corporate cards Businesses that were exposed to corporate card fraud faced it from one or more sources. Unknown individual: 57 % Employee theft: 40 % Known vendor: 14 % 10 % in 2012 23 % in 2013 Other payment types are gaining popularity, except ACH debits. 43% Credit/ Debit cardsWire transfersACH creditsACH debits Percent of total financial losses reported. average loss $23,100 average loss $20,300 average loss $19,200 average loss $18,400 average loss $17,100 2013 30% 2012 27% 2011 26% 2010 29% 2009 30% 29% 43% 11% 14% 8% 9% 27% 22% Credit/ Debit cardsWire transfersACH creditsACH debits 2012 2013 29% 43% 11% 14% 8% 9% 27% 22% 29% 43% 11% 14% 8% 9% 27% 22% Credit/ Debit cards Wire transfers ACH credits ACH debits 29% 11% 14% 8% 9% 27% 22% 2012 2013 43% 29% 43% 11% 14% 8% 9% 27% 22% Credit/ Debit cards Wire transfers ACH credits ACH debits Businesses who reported being the victims of actual or attempted fraud continues to trend downward. 2012 2011 2010 2009 73% 71% 68% 61% 60% 2013 Of affected businesses: 27 % 16 % 57 % reported an increase in fraud reported a decrease in fraud reported no change in fraud Payments Fraud Peaks as Criminals EvolveThe Association for Finance Professionals’ 12th annual Payments Fraud and Control Survey asks finance professionals from across the country about their experiences with fraud and the strategies they are adopting to protect themselves. Criminals Shift Their FocusCheck fraud continues to be the most-targeted type, but it’s on the decline—while wire fraud levels have almost quadrupled since 2013. Fraud Reaches Record Highs fraud by payment type Are Emails Scams Behind the Shift?Criminals are using business email compromise (BEC) scams to trick employees into making payments to fraudulent accounts—and wire transfers are their main target. CHECK corporate andCommercial Cards XX % in 2013 34 % in 2014 39 % in 2015 Wire Transfer 13 % in 2013 27 % in 2014 48 % in 2015 82 % in 2013 77 % in 2014 71 % in 2015 Seventy-three percent of American companies were targets of paments fraud in 2015, a sharp increase from 62 percent in 2014. 2012 2011 2010 2013 71% 68% 61% 60% 62% 73% 2014 2015 Fraud in 2013: Attempts Down, Losses Up Out of total fraud attempts, percentage of businesses that experienced attempted check fraud. Checks seeing a decline, but still the favorite. 82% 87% 2013 2012 How Are Organizations Protecting Themselves?Here are a few tactics finance professionals are using to protect their companies from increasingly sophisticated criminals. 18% 29% 2013 2012 Corporate card fraud saw a major spike in losses. 0 10 20 30 40 50 60 56% 56 % 2012 2011 2010 2009 73% 71% 68% 61% 60% 2013 Of affected businesses: Of affected businesses: 27 % 16 % 57 % reported an increase in fraud reported a decrease in fraud reported no change in fraud 57 % reported no change in fraud 29 % 18 % 56 % 0 20 40 60 80 100 0 10 20 30 40 50 0 5 10 15 20 25 30 35 40 0 10 20 30 40 50 64 %

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