Study Indicates a Surge in Payment Fraud Attempts on US Businesses.

A recent study by Trustpair reveals a 71% surge in payment fraud attempts targeting US businesses in 2023. The comprehensive research, conducted on over 260 senior finance and treasury leaders, indicates that a staggering 96% of US-based businesses faced at least one fraud attempt, with 90% falling victim to a successful attack. The report, titled ‘Fraud in the Cyber Era: 2024 Fraud Trends and Insights,’ highlights the increasing sophistication of fraud tactics, encompassing hacking, deepfakes, voice cloning, and sophisticated phishing schemes.

Additional key findings from the report include:

  • Fraudsters are adopting more advanced tactics to target US businesses, expanding their reach to new targets and infiltrating organizations through various channels.
  • Trustpair’s CEO emphasizes the growing importance of automating bank account validations and integrating them into daily processes, especially as vendor payment fraud incidents rise.
  • Predominant methods used by fraudsters include text messages (50%), fake websites (48%), social media (37%), hacking (31%), scams (31%), and deepfakes (11%).
  • According to the survey, 36% of companies experienced average financial losses exceeding USD 1 million from successful fraud attacks, with 25% reporting losses exceeding USD 5 million.
  • Payment fraud not only results in financial losses for businesses but also damages trust and relationships, with 75% of C-level executives stating they would cease business dealings with an organization that falls victim to payment fraud.
  • A successful fraud attack negatively impacts customer trust (51%), investor confidence (50%), and relationships with suppliers and vendors (45%).

The study underscores the urgent need for companies to invest in advanced fraud detection technologies. While 67% of US companies anticipate a further rise in payment fraud in 2024, only 16% claim to regularly clean and monitor their vendors’ databases. Additionally, 28% verify information on the companies they work with, leaving room for scammers to exploit vulnerabilities.

Trustpair, headquartered in France, is a payment fraud prevention platform catering to large companies globally. The fintech emphasizes the value of automation, with 34% of businesses leveraging automated account validation tools. However, 38% still rely on manual account validations, potentially complicating and slowing down fraud prevention efforts. Trustpair, which secured EUR 20 million in funding in October 2022 for US expansion and research and development, has assisted over 250 companies worldwide in effectively combating fraud.

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