Coordinated lines of defense are key to fighting payment fraud, says new Deutsche Bank document
Deutsche Bank’s latest article explores the importance of close collaboration between businesses, banks and technology providers to build a collaborative and robust defense against payment fraud
Today, Deutsche Bank launches its latest white paper – “A corporate’s guide to payment fraud prevention” – which highlights the growing need for corporations, banks and technology providers to work together to identify and address areas vulnerability to payment and teamwork fraud to create a cohesive defense against these risks.
Payment fraud has become one of the biggest challenges facing corporate treasurers in recent years, with criminals targeting companies of all sizes and across all industries using increasingly sophisticated technologies. The cases are so prevalent that the Association of Financial Professionals (AFP) recently discovered that 71% of organizations responding to its annual survey were victims of payment fraud in 2021. In light of these developments, the industry payments faces a constant battle to keep up. with new methods of fraud, such as fake invoice scams, man-in-the-middle attacks, and business email compromise.
“This document comes at a critical time,” said Stefan Fruschki, Head of Transaction Oversight and Cross-Product Governance, Deutsche Bank. “While anti-fraud strategies for businesses are steadily improving, so are the strategies employed by fraudsters to circumvent them. To counter this, each player in a payment chain, whether company, bank or technology provider, brings a unique set of skills and expertise – and the fact that these ideas and approaches exist in isolation does not produce the vital synergies.”
Fighting fraud within each of these silos is only effective if, the document concludes. By working together, the industry can deliver greater value than the sum of its parts, creating a more efficient, streamlined, and ultimately more effective ecosystem for preventing fraud.
Issued by Deutsche Bank AG Media Relations Taunusanlage 12, 60325 Frankfurt am Main
Telephone +49 (0) 69 910 43800, Fax +49 (0) 69 910 33422
https://www.db.com/news Email: [email protected]
Release 1 | 2
With this in mind, the paper explores the role each of these stakeholders can play in minimizing risk, taking into account the views and examples of industry experts in each case.
“The dangers of fraud have been highlighted during the Covid-19 pandemic, which has seen many of our employees, and those of our counterparties, move to a work-from-home environment,” says Gerd Berghold, Head of Treasury Operations and Digital Treasury, Deutsche Bahn, and article contributor. “This left communication channels more exposed and, therefore, more vulnerable to fraudulent attacks.”
To protect against these exposures, the document recommends that companies focus on 1) raising awareness of common risks and techniques among their staff, 2) auditing their processes to ensure consistency and safety, 3) performing a bespoke organizational risk assessment outlining a clear segregation of duties. across branches, legal entities and jurisdictions, and 4) implementing innovative technology solutions to help detect any attempt as early as possible.
“With fraud attempts on the rise and criminals increasingly targeting people rather than technology, this type of education is critical to strengthening defenses and minimizing risk to businesses,” concludes Stefan Fruschki.
To read “A Corporate’s Guide to Payment Fraud Prevention”, please click on here.