Fraud Continues to Decline While Corporations Remain Alert

According to AFP's 2014 Payments Fraud and Control Survey, 60% of organizations were impacted by payments fraud in 2013. While this is a slight decline from the prior year, it is a 13% decline from 2009 when payments fraud was at its peak. It also reveals that as a consequence of the recent security breaches at major U.S. retailers, 63% of organizations have either adopted additional security measures or are planning to do so in the near future.

Other key findings:

  • Checks remain the most targeted payment method for fraudsters. 82% of affected organizations had their checks targeted, a decline from 87% the previous year.
  • Credit/debit cards were the second most affected payment, and jumped significantly from 29% to 43% last year, followed by ACH debits, wire transfers, and ACH credits.
  • The most prevalent check fraud method is altering the check MICR line, cited by 62% of respondents. This is followed by payee name alteration, altered dollar amounts, fake account information, employee paychecks and loss of check stock.
  • 57% of organizations saw no change in the number of fraud incidents, 27% reported an increase, and 16% reported a decrease.
  • The typical loss incurred by companies due to payment fraud was $23,100.

The results of the survey highlight the importance for organizations to take appropriate measures to minimize their exposure to fraud. To help minimize your risk, we offer these features within ExpertRPS:

  • Image Clearing to accelerate clearing and fraud identification
  • Check Verification Service integration to determine the likelihood of a return
  • Cash Only Client Review to ensure specific accounts pay by cash only
  • High Dollar Review enables additional scrutiny or facilitates special approvals
  • Hot Files to enable review and/or rejection of payments based on your business rules
  • Image Quality Review to ensure readability of each check presented for clearing