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 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 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

    agentic commerce

    Biometrics Are Here. Agentic Payments Aren’t—Yet.

    September 4, 2026
    swift cross-border

    P2P Payments Have Changed How Consumers Move Money. What’s Next?

    September 3, 2026
    holiday prepaid

    The Holiday Gift Card Outlook: Why Repeat Buyers Matter Most

    September 2, 2026
    co-branded debit cards

    A New Generation of Consumers Is Changing the Role of Debit Cards

    September 1, 2026
    BNPL for credit unions

    How BNPL Is Helping Credit Unions Strengthen Member Relationships

    August 31, 2026
    cross-border tokenized deposits

    Project Agorá Is Showing Banks Why Tokenized Deposits Matter

    August 28, 2026
    prepaid speed

    How Jumpstarting Gift Card Redemption Can Mitigate Breakage

    August 27, 2026
    ISO and ISV partnerships

    Building a Successful Payments Strategy: How ISOs and ISVs Can Drive Scalable Growth Together

    August 26, 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

    ©2026 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