80% of companies fell pray to payments fraud in 2008

Association for Financial Professionals (AFP) presented the results of the research that show over 70% of US firms became victims of attempted or actual payments fraud in 2008. 629 corporate treasury and finance professionals survey, sponsored by the JP Morgan Treasury Services, found that large organizations were more likely to have experienced payments fraud. 

The survey found that in 2008 massive 80% of firms with annual incomes over $1 billion became the victims of payments fraud, while the percentage of the companies that had revenues of under $1 billion was 63%.

About a third of respondents consider that fraud incidents in 2008 increased compared to 2007. Almost 40% experienced increased fraud activity during the second half of 2008 which is attributed to the worsened economic conditions in the US.

Nearly nine out of ten firms affected in 2008 were victims of check fraud. ACH debit affected 28%, consumer credit or debit cards, 18%, corporate/commercial cards, 14%, ACH credits, 7%, and wire transfers, 6%. 

Around two thirds of companies that became the victims of actual or attempted payments fraud in 2008 experienced no financial loss, and among those that did, the typical amount was a modest $15,200. 

Companies are implementing various measures offered through their banks in order to combat payments fraud. Over 80% are using positive pay or reverse positive pay, 71% ACH debit blocks, 55% ACH debit filters, 50% payee positive pay and 34% "post no check" restriction on depository accounts. Businesses are also stopping the provision of payment instructions by phone or fax, 86%, increasing the use of electronic payments for b2c and b2b transactions, 82%, and reducing the number of bank accounts, 82%.