We’re proud to share the results from the 2023 AFP Payments Fraud and Control Report. As a sponsor of the survey for the last 15 years, J.P. Morgan is committed to helping you protect your organization from payments fraud.
You can dive even deeper into the results by joining our companion webinar, where our panel of experts will explore new fraud trends and share solutions that can help you respond to threats. We’ll discuss how new technologies have impacted fraud—and how some old ones also perpetuate it. You’ll walk away with examples of the best policies and procedures to implement in your organization.
Contributors
Greg Kerwick
Head of Client Solutioning, Commercial Banking, J.P. Morgan
Tom Hunt
Director, Treasury Services AFP
Marylynn Diallo
Payments Fraud Solutions Senior Product Manager, Commercial Banking, J.P. Morgan
Measure your organization’s fraud experiences to other companies
Payments fraud incidence
- 65% of organizations report being a victim of attempted or actual payments fraud in 2022
Fraud victims
- 84% of companies with an annual revenue at least $1B and more than 100 payment accounts report that they were a victim of attempted or actual payments fraud
Fund recovery time
- 61% of organizations recovered funds within two weeks of fraud occurring
Trends in payments fraud
Uptick in Digital Fraud
- 10% increase in commercial card fraud
- 6% increase in both ACH credit fraud and virtual card fraud
Tip: Implement validation services for digital payments
Check fraud remains prevalent
- 63% of organizations faced some kind of check fraud
- 75% of organizations do not plan to discontinue issuing checks
Tip: Implement payee verification services with financial institutions including payee matching in check verification, to prevent fraudulent or mistaken payments.
Business Email Compromise (BEC) still ranks as a top threat
BEC remains the root cause of fraud at the majority of organizations
- 71% of companies have reported being victims of fraud via email
- 45% of BEC fraud attempts occurred through wire the highest in five years
Top 3 ways you can combat BEC:
- Implement company verification policies (e.g., contact information from a system of record) before making changes to existing invoices, bank deposit information and contact information.
- Confirm requests for any transfer of funds by executing a callback to an authorized contact at the payee organization using a phone number from a system of record.
- Continuously educate employees on BEC threats and how to identify email scams.
