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A corporate’s guide to payment fraud prevention
May 2022
Payment fraud has become one of the biggest challenges facing corporate treasurers today. So, how can companies safeguard systems and processes against cyber criminals? And what are the latest fraud patterns that they should know? Our new flow special white paper provides answers
Fraud is an ever-growing threat for corporates. The Association for Financial Professionals’ (AFP), for example, found that 71% of organisations that took part in its annual survey had been the victim of payments fraud in 2021.1 This is unsurprising given the general trajectory of cybercrime, with researcher Cybersecurity Ventures reporting that it expects global cybercrime costs to grow by 15% annually over the next five years, reaching US$10.5trn annually by 2025 – up from US$3trn in 2015.2
“What we are facing is organised crime. I usually think of it like this: an employee of Deutsche Bank, or one of our clients might be working a 10-hour day and is doing a great job in their respective field. The fraudsters are doing an equally good job in their respective field. It is not a hobby for them; it is a profession,” says Ramon Schuerer, Global Head Fraud Risk Management, Deutsche Bank.
Common fraud techniques and new challenges
While it is a constant battle to keep pace with common fraud techniques such as fake-invoice scams, man-in-the-middle attacks or business-email-compromise, the transformation of the payment business brings new challenges as well. For example, the advent of instant payments and the increasing speed of settlement could make fraud detection more difficult – even though, in general, instant payments will bring huge benefits for liquidity management and the overall client experience.
“In this sense, it is a constant game of cat and mouse,” says Ole Matthiessen, Global Head of Cash Management, Deutsche Bank. “No one is safe, with criminals targeting corporations of all sizes, across all industries.”
A corporate’s guide to payment fraud prevention Fighting fraud together
So, what do corporate treasurers need to do to avoid payment fraud? How can banks support companies to safeguard system and processes and raise awareness among employees? And where do technology providers fit in?
In this white paper, we will look at the fraud-related challenges being faced today, before turning to outline how the combination of efforts from corporates, banks and technology providers can help to prevent fraud – which is underlined by case studies and quotes from clients.
