Global Survey Shows Lack of Payment Security Layers in Place for Corporate Treasuries
Fifty-seven percent of more than 300 respondents to a recent survey conducted by Strategic Treasurer and underwritten by Bottomline Technologies say that they have no formal framework in place to protect their organizations from payment fraud. Strategic Treasurer, a leading treasury and risk consulting and analyst firm, and Bottomline Technologies, a leading provider of cloud-based payment, invoice and banking solutions, completed the survey in North America, EMEA and APAC in the first quarter of 2016.
According to the survey, payment fraud attacks are on the rise in terms of both frequency and sophistication. Historically, check fraud has been extremely easy to perpetrate. Based on survey responses companies are also now experiencing a rise in wire fraud with 1 in 4 responding companies indicating that they have experienced loss due to this type of attack.
“This research is of great value to corporate treasurers across the globe. While many have heard of the recent high profile attacks, for most, their vulnerability to fraud has not been analyzed at the level of detail required” explains Craig Jeffery, managing partner at Strategic Treasurer. “This survey clearly demonstrates the seriousness and reach of the growing payment fraud issue. For attackers, crime is paying off and the lack of protection surrounding their targets has brought about an escalation in their assault. We want to ensure that companies truly understand the magnitude of this threat and the risk implications so that they can take the necessary steps to proactively guard against attack across all areas of risk.”
The survey highlights practical insight on how companies are, or should be, protecting themselves across the areas of an overall control framework that includes process controls, reconciliation and visibility, payment workflows and processes, and technology investment.
“A “band aid” approach isn’t a viable fraud protection model” adds Gareth Priest, VP of Business Solutions at Bottomline Technologies. “Companies need to have the right mind-set when it comes to fraud protection. It’s recognizing that you will have to make changes, developing a global strategy, and then making the right investments; an ad-hoc approach will not provide the protection needed”