In an increasingly digitized world, where convenience often goes hand in hand with vulnerability, the realm of financial transactions has become a battleground for both consumers and cybercriminals. As technology evolves, so do the methods employed by fraudsters to exploit weaknesses in payment systems, leaving individuals and businesses grappling with the ever-present threat of financial fraud.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Commercial and Enterprise Payments Fraud: 2023 Edition
Payment Methods Subject to Fraud by Type (2022)
(percent of organizations)
- 63% – Checks
- 36% – Corporate/commercial credit cards
- 31% – Wire transfers
- 30% – ACH debits
- 30% – ACH credits
Source: AFP, 2023
Fraud in commercial payments is a rising concern, with Javelin Strategy & Research data showing that businesses expect it to increase over the coming year. The reasons for pessimism are many—the ascendancy of digital payments, the complexity of global supply chains, increasingly sophisticated criminal schemes—and the threats to companies are internal and external.
Though fraudsters often seem to have the upper hand with their schemes, companies can counter effectively through the smart deployment of technology along with a corresponding shoring up of security measures and staff training to recognize the threats.