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Finance Technology That Keeps You Out of Court
There are numerous sources that point to where fraud occurs within the organization and the accounts payable department is not exempt. The news headlines that capture front-line managers successfully pilfering funds to personal accounts that amount to hundreds of thousands over time are not one-time occurrences.
This article looks at the 6 mistakes that can land a finance manager in court. I’d like to take this opportunity to highlight a few ways in which an accounts payable automation solution can reduce your risk of fraud both internally and externally.
Credit card fraud
The risk: Many organizations want to take advantage of making B2B vendor payments with a card to capture rebates and cashback. However the risk of handing over a copy of a card, the CCV number or even sharing over email opens you up to your card being hacked and used for unapproved purchases.
The solution: Using virtual cards as a form of payment provides that layer of security you need. Linked to your corporate card, you initiate a payment to a vendor and a virtual card is created automatically. This is a one-time use card for a specific payment amount to a specific vendor and needs to be processed within a certain number of days. Once processed, the card number is no longer active.
The risk: By enabling authorization for Finance Managers or Accounts Payable Managers to upload invoices, approve them and submit payments, you lose visibility into what is being paid, to whom and when.
The solution: Segregation of duties enforces two users to perform each part of the workflow. This prevents one person from controlling the entire invoice-to-pay process.
No limits on payment amounts
The risk: Without setting a payment limit for certain approvers, you are at risk of releasing large payment amounts without executive approval.
The solution: Tiered approval workflows ensure payments within or over defined thresholds are being approved by the appropriate personnel within your company. This ensures large payment transfers have to go through numerous approvers before being executed.
Learn more about MineralTree’s built-in fraud protection here: https://www.mineraltree.com/products/fraud-protection/
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