PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

The State of Invoice and Payment Fraud Heading into 2021

By Steve Murphy
December 15, 2020
in Analysts Coverage, Data, Emerging Payments, Fraud & Security, Fraud Risk and Analytics, Personal Data
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
The State of Invoice and Payment Fraud Heading into 2021

The State of Invoice and Payment Fraud Heading into 2021

Readers who have been following various payments trends since COVID arrived and WFM policies took effect will likely know that fraudsters have been having somewhat of a ‘field day’ when it comes to illegally extracting money from companies in this environment. 

This brief piece in Finextra is a reminder for companies to go back over (or maybe for the first time) some of the protective measures to combat phishing, smishing, etc; basically business e-mail compromise scenarios, or social engineering based on learned internal data.

‘A BEC attack, also known as man-in-the-email, involves cyber criminals masquerading as, or directly compromising a business email account in order to extort trusting individuals into taking a certain action. In the case of invoice and payment fraud, the BEC attack will usually target a business’s finance department and pose as a vendor or senior management and will ask for a payment to be made to a fraudulent bank account…. In the first half of 2020 we saw a spike in COVID-19 related BEC attacks, however, according to Abnormal Security, invoice and payment-based BEC fraud rose by 81% between Q2 and Q3. The exponential increase in invoice and payment fraud is only projected to continue in Q4 and into early 2021.’

We have covered the payments fraud issue regularly, most recently in member reports earlier this year on the e-commerce space. The most basic protective measure to combat these social engineering scams is to hold employee training sessions and remind them to be on the lookout for unusual requests from colleagues, seniors and supposed clients. It would be likely an exception these days for any reader to have NOT received one of these mails during the past couple of years, and even more so in this strange year.

‘In 2019, surveys by UK Finance revealed that invoice and payment fraud costs organisations £92.7 million each year and that 43% of businesses are not aware of the dangers of invoice fraud. The cost of invoice and payment fraud is only going to increase as we move into 2021 and with the lack of awareness in the general business population, invoice and payment fraud will likely remain highly successful.’

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Cyber FraudCybercrimeDataFraudPaymentsPhishing Attacks

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    chatgpt payments

    How Merchants Should Navigate the Rise of Agentic AI

    January 30, 2026
    fraud passkey

    Why the Future of Financial Fraud Prevention Is Passwordless

    January 29, 2026
    payments AI

    When Can Payments Trust AI?

    January 28, 2026
    Contactless Payment Acceptance Multiplies for Merchants: cashless payment, Disputed Transactions and Fraud, Merchant Bill of Rights

    How Merchants Can Tap Into Support from the World’s Largest Payments Ecosystem

    January 27, 2026
    digital banking

    Digital Transformation and the Challenge of Differentiation for FIs

    January 26, 2026
    real-time payments merchant

    Banks Without Invoicing Services Are Missing a Small Business Opportunity

    January 23, 2026
    card program

    Should Banks Compete in the Credit Builder Card Market?

    January 22, 2026
    real-time payments, instant payments

    Getting Out in Front of Instant Payments—Before It’s Too Late

    January 21, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result