Worried About ACH and Check Fraud? Outsource Your ePayments
A recent survey by the Association for Financial Professionals (AFP) indicates a significant rise in payment fraud (see survey results here). In 2016, 74% of finance professionals reported that their companies were victims.1
According to AFP, checks continue to be the biggest target for fraud, with 75% of organizations falling victim in 2016. After checks, ACH and wire transfers were the second most frequently targeted payment method.2
The AFP report highlights that nearly 63% of payments fraud attempts were made by outside individuals. Recently, there have been numerous phishing scams targeting colleges and businesses. A mid-Atlantic college lost over $1.1M after changing their payment instructions based on an email that appeared to be from a legitimate supplier.
Let’s be honest—most AP departments are experts in processing payments, but not risk mitigation. While it might seem like a good idea to do ePayments yourself, the odds are not in your favor. In addition to the financial risk of in-house ePayments, businesses have to audit their own programs under the National Automated Clearing House Association (NACHA) rules. This creates additional costs and responsibility for internal auditors and AP staff.
Before taking on the risk and responsibility of managing an ePayments program yourself, consider outsourcing your ePayments. Benefits include:
- Reduced risk
- Improved compliance
- Operational efficiencies
- Valuable rebates
At Paymerang, we go the extra mile to protect your check, ACH and card payments—securely enrolling your suppliers online, encrypting their account information, storing it on your behalf and requiring secondary authentication for administrators using the website.
1 See https://www.afponline.org/trends-topics/topics/articles/Details/survey-record-number-of-businesses-hit-with-payments-fraud.
2 See https://digital.wf.com/treasuryinsights/portfolio-items/tm3145/.