Nearly three-quarters of corporate treasury and finance professionals said their companies were victims of payments fraud last year, according to the 2017 Association for Finance Professionals (AFP) Payments Fraud Survey, which generated 547 responses.
This is the highest percentage since the survey debuted in 2005 and comes after a dramatic increase in 2015. Check fraud and business email compromise are both on the rise.
Checks continue to be the most popular method for committing payments fraud. Fully 75% of organizations that were victims of payments fraud in 2016 experienced check fraud – an increase from 71% in 2015. This is a reversal of the declining trend observed in check fraud since 2010.
Highlights of the 2017 AFP Payments Fraud and Control Survey, which was underwritten by J.P. Morgan.
- 74% of survey respondents said their organizations were victims of business email compromise in 2016 – a 10 percentage point increase from 2015.
- 70% of organizations have implemented controls to prevent business email compromise.
- 63% of payments fraud attempts were made by outside individuals.
“Companies that offer mandatory training for all employees, particularly around cybersecurity, and that have a plan to respond to payments fraud, will fare better than those that do not,” says Jim Kaitz, president and chief executive of AFP.
Over 70% of corporate treasury and finance professionals are hesitant about adopting mobile payments at their organizations as they question the security of this payment method.
Nancy McDonnell, managing director at J.P. Morgan, says, “With three-quarters of companies experiencing fraud in 2016, it is important that businesses take preventive measures by educating their employees and implementing the products and processes they need to prepare and protect their assets and data from cyberfraud.”