Payment fraud amounting to billions of dollars remains one of the top risks to companies globally. Over 66% of US corporate finance departments reported a breach that has cost them money in the last 12 months. Furthermore, it has significantly damaged reputations.

88% of organisations say they have had at least one case of payment transaction fraud in the past two years. 76% of respondents say it took more than a month to more than a year to discover and remediate these incidents. That is according to data reported by Creednz, a platform that safeguards corporate finance teams from payment scams.

Beyond losing capital, the number one negative consequence following a fraud incident is reputational damage to business partners and consumers. 60% of survey respondents reported a hit to their reputation and brand. This is followed by non-compliance with regulations (51% of respondents) and loss of shareholders’ confidence (46% of respondents).

An additional negative is that over a quarter of respondents said they fired employees who made the payments. This highlights the highly manual process involved in processing payments, and in turn the large margin for human error.

Fear of fraud is present

The report showed the way respondents feel about fraud. 61% say payment policies are applied consistently without consideration of risk or location. 68% of financial professionals do not believe their banks will verify and stop suspicious transactions, in addition to the 76% that say they are concerned about the potential of fraud when making payments to regions outside of the U.S. and Canada.

Creednz Co-founder and CEO Johnny Deutsch, said: “A manual process leads to fraud, and those that get blamed are the ones who literally clicked the ‘send’ button. It makes no sense in today’s world that technology isn’t being utilised and applied to prevent this in the first place. Creednz was built from the ground up to give finance teams the tools to fight back and protect against payment.”

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By GlobalData