Combat Fraud by Expanding AP Automation and Embracing Digital B2B Payments

With the increase in cybercriminals targeting businesses, Accounts Payable (AP) departments are becoming more vulnerable to fraud. According to a recent?PYMNTS Intelligence?report, Winning the Fraud Fight: How AP Automation Can Deflect Rising Security Threats,?83 percent of companies reported being targeted by cybercriminals.

According to the report’s survey of Chief Information Security Officers (CISO), 96 percent said that their companies experienced at least one fraud attempt in the past year, up from 56 percent the previous year, and 94 percent reported multiple attacks. In addition, more than eight in 10 U.S. companies were targeted by sophisticated digital payment fraud tactics. That’s a big number!

While increasing digitization has expanded cyberthreats from wire transfer, vendor and CEO fraud, manual processes and payments can be even more vulnerable to attacks. For example, paper checks are the primary fraud target of fraudsters, according to 65 percent of those surveyed. This is nearly double the 33 percent rate of ACH debit fraud.

However, not just cybercriminals cause harm to companies’ revenues. According to the survey, 74 percent of CISOs cite human error as their main cybersecurity risk.

Whether it’s a sophisticated cyberattack or simple human error, companies are turning to AP automation to combat fraud.

Here are four proven ways to reduce your company’s exposure to B2B payment fraud:

1. Adopt digital, automated AP systems. Embrace end-to-end payment platforms with built-in fraud detection. Automated AP can also enforce compliance checks while monitoring transactions in real-time, reducing the likelihood of fraud.
2. Eliminate outdated forms of payment. Legacy systems, including paper checks and other paper-based payment methods, are highly susceptible to fraud, particularly because paper checks can be “washed” to change the payee’s name and amount.
3. Integrate real-time monitoring and account validation. Knowing what’s happening to your accounts as it happens helps mitigate fraud risk and ensure that your business is better prepared to fend off cyberattacks.
4. Embrace Virtual Card B2B payments. By accepting virtual cards and other virtual payment methods, your company will reduce incidences of fraud, increase revenues and reduce payment processing costs.

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