Not knowing who’s on the other side of the transaction is expensive.
As noted here last month, financial institutions (FIs) were fined nearly $5 billion for anti-money laundering (AML) violations, breaches of sanctions and flaws in know-your-customer (KYC) systems last year.
That’s up 50% from 2021.
Incoming payments and accounts receivable processes are a key point of vulnerability for banks and for enterprises in general. The “customer” — the individual or enterprise holding the bank account or contacting B2B customers — might not be who they say they are. Hacks and social engineering wind up making it difficult to effectively guard against fraud and money laundering.