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B2B payments fraud still a major concern in the US - survey

Friday 23 April 2010 11:56 CET | News

B2B payments fraud is still a pressing matter for US organizations, but many are employing fraud control measures to prevent it, a recent survey has revealed.

Carried out in January 2010 by the Association for Financial Professionals (AFP), the research has shown that criminal entrepreneurs commit most of the B2B payments fraud attempts, with outside individuals accounting for over 85 percent of the fraud.

According to the same survey, payment by cheque is the preferred method for fraudsters since 90 percent of the polled organizations experienced at least one such fraud attempt in 2009, whereas 64 percent of fraud losses were linked to cheques.

As far as the main fraud-elimination methods are concerned, the AFP survey lists bank-provided control measures that include positive pay/reverse positive pay (83 percent), ACH debit blocks (77 percent), ACH debit filters (58 percent), and payee positive pay (52 percent).

Nevertheless, two thirds of companies also rely on internal processes such as daily reconciliation and account segregation, for example using separate accounts for ACH and check transactions. In addition, 8 percent of organizations use non-bank provided fraud control services.
 


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Keywords: Association for Financial Professionals, B2B payments fraud, payments general
Categories: Payments & Commerce
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Countries: World
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Payments & Commerce






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