The 2022 AFP Fraud and Payment Control Survey, underwritten by JP Morgan, reports that nearly half (47%) of respondents do not believe remote working has played a role in the rise in fraud payments in their organizations
BETHESDA, MD., April 5, 2022 /PRNewswire/ — The results of AFP’s 2022 Payment Fraud and Control Survey are encouraging, with 71% of organizations reporting being victims of payment fraud activity in 2021, which is lower than the 81% reported in 2019 and the lowest percentage recorded since 2014.
Among respondents who reported an increase in payment fraud in their organization, 47% do not believe that remote work has contributed to this increase. However, nearly a third (32%) believe that remote working has played a role in the rise in payment fraud in their business.
Check fraud activity is unchanged from the prior year at 66%, while the share of respondents reporting payment fraud via ACH debits increased four percentage points from a year ago to reach 37%. Checks and ACH debits are the most susceptible to payment fraud, while electronic fraud activity has continued its steady decline from 48% in 2017 to 32% in 2021.
One encouraging result is the noticeable decrease in business email compromise (BEC) compared to the previous year. Sixty-eight percent of organizations were targeted by email scams in 2021; down eight percentage points from the previous year. Both wire transfers and ACH credits are key targets for email scams, with each of these payment methods targeting 41% of organizations in 2021.
“While payment fraud remains a huge challenge for organizations, the decreases we are seeing in almost every area are a clear signal of the efforts of our colleagues and business leaders to limit fraudulent payment activity resulting from criminal attempts. “, said Jim Kaitz, Chairman and CEO of AFP. “That said, we must remain vigilant in our pursuit of education, training and innovation to stay ahead of our sophisticated adversaries.”
“It is encouraging to see the positive outcome of so many companies continuing to proactively combat payment fraud in their organizations,” said Sue Dean, head of payment solutions for JP Morgan’s Commercial Banking business. “While the increased shift to digital payments and processes over the past two years may present more opportunities for fraudulent attacks, it is clear that we are moving in the right direction together.”
Other highlights from the 2022 AFP Fraud and Payment Control Survey include:
- Two-thirds of organizations validate payment recipient information, either through their provider/bank (36%) or using an external service (30%).
- Accounts Payable (AP) services continue to be the most susceptible services to BEC, with more than half (58%) of survey respondents indicating that their services have been compromised by email scams.
Over 550 treasury and finance professionals responded to the survey. For more information on the investigation, please visit www.AFPOnline.org/paymentsfraud. For press inquiries, contact Melissa RawakDirector General, at email@example.com.
Headquarters outside washington d.c.and located regionally in Singapore, the Association of Financial Professionals (AFP) is the professional society committed to advancing the success of treasury and finance members and their organizations. Created and administered by AFP, the Certified Treasury Professional and Certified Corporate FP&A Professional certifications set standards of excellence.
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SOURCE Association of Finance Professionals (AFP)