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No Business is too Large or too Small to Avoid Payment Fraud Threats

07 February 2018

No Business is too Large or too Small to Avoid Payment Fraud Threats

 
Ellie Fixter,
External Communications,
Vocalink

Although not in the job description, small and local business owners never lack for things to worry about. Losing clients or staff tops their list of potential threats. Most owners do not realize that payment fraud poses a much greater risk.

Case in point: 50 percent of small and medium-sized enterprises (“SMEs”) across the U.S. believe that the impact of modern-day payments fraud on their business would be minimal and that they would lose only a small amount of money, according to a new report from Vocalink Analytics. This is despite FBI figures released last year that show that Business Email Compromise fraud (BEC) has grown into a $5.3 billion industry[1].

Fraud has become so complex that over a third of U.S. SMEs have not even heard of the various types of payment-related fraud including BEC, invoice redirection and mandate fraud, all of which redirect standing business orders or payments to fraudulent recipients. 

“No business is too large or too small to avoid being targeted by potential payment fraud. Owners are occupied doing the things they love, which is why they started their own companies. However there are actions they could take to protect themselves,” said Gary Kearns, Executive Vice President of Vocalink Analytics. “Our report shows the potential impact and new insights to effectively help tackle fraud.”

The Vocalink Analytics Small Business Fraud Report is considered the annual and definitive barometer for payments-related small business fraud in the U.K. This year’s report has been expanded to incorporate the U.S. and is available here for download.

 

Vocalink Analytics Corporate Fraud Insights

Payments fraud occurs when companies pay money to fraudsters rather than legitimate suppliers; whether in a one-off bill or a regular payment. Once processed, the funds are quickly laundered and rarely recovered, leaving financial institutions and their customers to bear the cost.

Our Corporate Fraud Insights solution identifies and flags suspected fraudulent transactions early in the transactional cycle by applying advanced analytics and behavioural rules to payments data.

“Business email compromise attacks are projected to exceed $9 billion in 2018[2], less than one year since the FBI reported that these attacks had reached $5.3 billion,” concluded Kearns.

Vocalink Analytics focusses on bringing together data science and payments, with a view to create actionable insights for clients. https://www.vocalink.com/analytics/

 

[1] FBI Public Service Announcement https://www.ic3.gov/media/2017/170504.aspx

[2] Trend Micro’s Report - Tracking Trends in Business Email Compromise (BEC) Schemes

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