A survey revealed that more than 80 percent of organizations – including financial institutions and other businesses – suffered from payments fraud in 2018. Fraud was also more common among larger institutions: 87 percent of those with revenue more than $1 billion experienced fraud compared to 69 percent of those with less revenue.
In addition, business email compromise (BEC) scams increased last year, with more than half reporting financial losses as a result. BEC scams are used to gain access to a business email account and imitate the owner’s identity in an effort to defraud a company.
While checks are most likely to be impacted by fraud, organizations reporting check fraud continues to decline. Fraud activity related to ACH debit and credit is on the rise.
The report, released by the Association for Financial Professionals and sponsored by J.P. Morgan, included responses from more than 600 treasury and finance professionals.
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