5 Payments Fraud Trends to Watch in 2024

Payments fraud increased in 2023 for the first time since we started watching and sharing results from the annual AFP Payments Fraud and Control Survey Report.

“With heightened awareness and increased preventative controls and processes in place, the increase is not a result of a passive mindset among organizations but rather relentless attempts by fraudsters,” said the AFP in a recent statement.

Payments Fraud increased 15% in 2023. 80% of organizations reported attempted or actual payments fraud in 2023, marking the annual first increase in many years.

5 Trends to watch

Here are some of the key results to be aware of and ensure that your vendor payments are being properly secured.

1. Checks are most vulnerable. 65% fraud attacks were reported as check fraud
2. USPS Mail-based fraud saw the largest increase, up 10 percent from last year
3. at 20%.
4. ACH fraud is most vulnerable to Business Email attacks, at 67% of email based fraud. 67%
5. Less than half (41%) of respondents were able to recover 3/4 or more of their losses due to fraud 41%

"Financial professionals are steadfastly committed to combatting payments fraud," said Jim Kaitz, President and CEO of AFP. "However, fraudsters are leveraging increasingly sophisticated tools, and to overcome this challenge, organizations must prioritize awareness, training, and the review and implementation of stringent policies and procedures to mitigate the risk and impact of payments fraud effectively."

Safe Vendor Payment Checklist

How to make ACH & Checks Safer!

• Encrypted at rest for storing ACH files
• Secure File Transfer Protocol for sending ACH files
• Support for Positive Pay for secure paper checks
• Two-factor authentication on payments software log-in
• Self-serve vendor portal, so nobody ever has access to vendor banking info
• Optional payment approval workflow for audit tracing

Conclusion

Payments fraud is on the rise for the first time in a long time. That means fraudster see B2B payments as an opportunity to cash in. If you haven’t thought about shoring up your payments security recently, now is the time. The entire Fdesic AP Service Suite was built for Microsoft Dynamics GP and D365 Business Central. Learn more about the integration points for each of these products at the links below.

• Microsoft Dynamics GP Accounts Payable Automation
• D365 Business Central Accounts Payable Automation

About the Report

The 2024 AFP Payments Fraud and Control Survey was conducted in January 2024 and received responses from 522 corporate practitioners representing organizations of varying sizes and a broad range of industries. The results from the survey reflect data for 2023.

This post, "5 Payments Fraud Trends To Watch in 2024" was orginially published at ERPSoftwareBlog.com