Payments Fraud Hits Record High, Impacting 82% of Businesses

A survey released earlier this month found that more than 80 percent of organizations, including financial institutions and other businesses, suffered from payments fraud in 2018.

Large organizations were particularly vulnerable to payments fraud, as businesses with revenue greater than $1 billion reported a jump of seven percentage points year-over-year to 87 percent. Organizations with revenue less than $1 billion experienced fewer fraud attempts in 2018, down four percentage points to 69 percent from 73 percent.

In addition, business email compromise (BEC) scams increased last year, with more than half reporting financial losses as a result. BEC scams are used to gain access to a business email account and imitate the owner's identity in an effort to defraud a company.

Organizations reporting check fraud continues to decline while fraudulent activity related to ACH debit and credit is on the rise.

The report, released by the Association for Financial Professionals and sponsored by J.P. Morgan, included responses from more than 600 treasury and finance professionals.

The Federal Reserve is offering a one-hour webinar on synthetic identity payments fraud tomorrow at 11:00.

Additional information on the Fed’s payments security priorities is available here.