To say that treasury professionals have their hands full with payments fraud might be the understatement of the decade. Corporate practitioners, whether they be entry level or senior executives, are taking leading roles in keeping their organizations safe from fraudsters, as well as determining the course of action going forward when fraud does occur. And make no mistake—fraud will happen, no matter how efficient your protections.
AFP’s latest Treasury in Practice Guide, underwritten by Kyriba, explores common fraud schemes that are plaguing corporate treasury departments. We also present a host of best practices, so that you’ll know what to do when the fraudsters come knocking on your organization’s door.
Fraud in record numbers
According to the 2017 AFP Payments Fraud and Control Survey, nearly three quarters of treasury and finance professionals’ companies experienced payments fraud last year. That’s the highest percentage since the survey debuted in 2005.
Similarly, the 2016/17 Kroll Global Fraud and Risk Report found that 82 percent of executives experienced a fraud incident in 2016, compared 75 percent in 2015 and 70 percent in 2014. But even though there have been major concerns about outside threats in recent years, 60 percent of respondents revealed that fraud had been committed by a combination of current and former employees and third parties. Nearly half (49 percent) said fraud incidents involved all three groups. Overall, 44 percent said that insiders were the primary perpetrators of fraud.
The AFP fraud survey also revealed that fraudsters are generally targeting the big fish. Organizations with at least $1 billion in annual revenue were more likely to have been hit with fraud than those who had revenues of less than $1 billion.
These numbers are a clear indication that treasury professionals need to be proactive about payments fraud. Although you would be hard-pressed to find a treasury department in this day and age that isn’t thinking about fraud, many of them still aren’t spending as much time and effort as they should be. AFP’s latest Treasury in Practice Guide is an excellent place to start addressing today’s threats.
Download Fraud in Record Numbers: Why Treasury Needs to Act Now here.