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10/28/2024

Don’t let payment fraud’s rising tide swamp your business

The Business Journal

Payment fraud is a fast-growing business threat, according to the 2024 AFP Payments and Control Survey Report. In 2023, for example, an alarming 80% of surveyed organizations were hit by actual or attempted payment fraud attacks. That’s up 23% from 2022.

While this surge mostly affected larger organizations, such as those with annual revenues exceeding $1 billion, businesses of every size need to watch out for this type of fraud. It includes the fraudulent use of checks, credit cards, electronic payments and general fraud to solicit unearned payment, each requiring specific strategies to mitigate risks effectively.

Building a strong human firewall

The report’s findings are a warning that payment fraud is a persistent and ever-evolving threat. To combat it, organizations must adopt a multi-faceted approach to prevention — a combination of employee education, stringent controls and technology protections. Unfortunately, the effectiveness of the latter two safeguards can be quickly undermined if a strong human firewall is lacking.

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