Business Payment Fraud Increased Last Year; Checks Once Again Most Targeted
Checks have consistently been a leading cause of business payment fraud. Yet, the majority of organizations today still rely on manual payments processes, including the use of paper checks. According to new research from the Association of Finance Professionals (AFP), 62 percent of companies were targets of payments fraud in 2014, up from 60 percent in 2013. Once again, checks were by far the payment method most subjected to actual or attempted fraud.
In 2014, 77 percent of companies that were targeted for fraud identified checks as a method used. It’s a slight drop from the previous AFP survey in which 82 percent respondents pointed to check fraud, but such consistently high numbers beg the question: why are business still using the same ineffective payment processes? They probably either lack knowledge of an alternative (but if you’re reading this, you’re already ahead of that crowd), or are operating on misconceptions. For example:
Myth: It’s too expensive for my business to automate its payments process.
Truth: It’s time to double check your math. If checks are the leading source of payments fraud, and have accounted for the largest dollar amount of loss, a small investment in changing payment processes and technologies could very well pay for itself.
Myth: It’s too hard to implement and too difficult to adjust processes for electronic payments.
Truth: AP and payment automation solution like MineralTree’s is flexible and easily fits into existing workflows, allowing companies to continue doing business the way that they always have – just more efficiently. MineralTree solutions support accounting systems used by more than 90 percent of the market.
Automated solutions can offer a variety of security features that protect customers from both external and internal fraud, such as dual approval workflow, multi-factor authentication, daily payment threshold limits, and more. On top of all that, MineralTree guarantees payments against online account takeover and fraud up to $100,000 annually.
Waiting to become a victim of fraud to switch your organizations’ payments processes? Don’t say we never warned you… over and over.
For more information on secure payments processes for your business, learn about MineralTree’s AP and payment automation.← Back to Invoice-to-Blog