According to AFP's 2013 Payments Fraud and Control Survey, a majority of organizations experienced actual or attempted payments fraud last year, but the incidence of fraud decreased for the third straight year. The positive trend is the result of migration to electronic payments and fraud mitigation strategies. Checks continue to be the dominant payment form targeted by fraudsters. Key findings:
- 84% of organizations said their payments operations have been impacted by a decrease in paper payments and increase in electronic payments.
- 61% of organizations experienced attempted or actual payments fraud in 2012.
- 87% of affected organizations had their checks targeted. The second most affected payment method was corporate purchasing cards, followed by ACH.
- 58% saw no change in the number of fraud incidents, 27% report an increase, 16% report a decrease.
- 73% of fraud victims had no financial loss. For those that did suffer a loss, the typical amount was $20,300.
The vulnerability of all payment methods, especially checks, to fraud from external and internal sources demands a range of fraud-fighting tools and the vigilance of those financial and treasury professionals responsible for protecting the assets of their organizations. These efforts appear to show continued signs of success; the percentage of organizations subject to fraud decreased for a third straight year.
To help minimize your risk, we offer these features within ExpertRPS:
- Check 21 - the fastest way to clear checks and identify potential fraud
- Check Verification - to determine the likelihood of a return
- Cash Only Client Review - to ensure specific accounts pay by cash only
- High Dollar Review - to catch items requiring special approvals
- Hot Files - to review and/or reject payments based on your business rules
- Image Quality Review - to filter out questionable items before they become returns