Fraud prevention becomes stronger by the year, yet incidents of fraud — and the costs associated with them — are still on the rise.
Those are the findings from the latest poll by the Association for Financial Professionals (AFP). An incredible 94% of respondents said their company experienced attempted or actual check fraud over the past year, while 71% percent of organizations were successfully hit with fraud.
Not only are more companies being attacked, but many are experiencing more frequent attempts: A third of those polled said their companies saw more incidents of fraud, compared to 2007.
Larger companies — no surprise here — seem to be a more tempting target for thieves: 80% of companies with more than $1 billion in annual revenue were victims of payment fraud, compared with only 58% of companies with less than $1 billion in revenue.
With an average financial loss of $13,900 per attack, the most important step for companies to take is to keep track of employee activity.
Of the companies polled, 50% said members of their own team were caught committing fraud, but regulating internal controls can reduce threats from both employees and outside fraudsters. Separating responsibilities so that different employees enter, keep track of and approve payments ensures that everyone keeps track of one another.