Payments fraud continues to be a major concern for organizations — and their financial institutions. The 2023 AFP Payments Fraud and Control Survey by J.P Morgan revealed that 65% of organizations were victims of payments fraud attacks or attempts in 2022. Of those, nearly half were not able to recoup those lost funds. Upon learning of the fraud, the vast majority said their first action was to seek help from their financial institution. Dealing with fraud can be time-consuming and costly, but it may provide an opportunity for financial institutions to promote their treasury management solutions.
It’s a complicated situation because business account holders increasingly want speed in their digital channel and payment options. The ACH Network processed 30 billion payments valued at $76.7 trillion in 2022, fueled in part by the growth of Same Day ACH. But fraudsters targeting payment systems to commit check and ACH fraud are becoming more sophisticated. It’s incumbent on financial institutions to focus on speed of payments to meet the needs of their business account holders, but they must also be focused on the security of those payments.
Businesses are looking for technology to help them identify:
- Altered, washed and fraudulent checks
- Unauthorized ACH transactions
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