JP Morgan improves payment fraud protection for SME clients

Wednesday 30 September 2020 12:38 CET | News

US-based lender JP Morgan has boosted payment fraud protections for its small and mid-sized business customers, according to Reuters.

The effort comes to protect businesses targeted by scammers, particularly amid the COVID-19 pandemic. Four-in-five small and mid-sized companies said they were targets of payment fraud in 2019, but that could be reduced if businesses use more tools to detect suspicious payments early. The bank’s new self-service ‘fraud hub,’ being introduced in late September 2020, will allow them to set alerts for unusually large payments and control who gets paid. The service supplements the current system in which customers call the bank to set controls.

The measures come amid a broader industry campaign to get businesses to be more vigilant against a major source of payment fraud: legitimate-looking emails, often impersonating the chief executive, with bogus instructions for paying suppliers or other third parties. These email scams cost companies USD 1.7 billion last year, according to the Federal Bureau of Investigation, and have been on the rise as fraudsters attempt to exploit uncertainty caused by the COVID-19 pandemic.

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Keywords: JP Morgan, payment fraud protection, SMEs, fraud, SMBs, scammers, COVID-19, pandemic, payment fraud, suspicious payments, bank, fraud hub, legitimate-looking emails, email fraud, FBI, fraudsters
Categories: Banking & Fintech
Countries: United States
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Banking & Fintech

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