January 2024 – Trustpair shares its annual US Fraud Report. Trends, numbers, insights… This 2024 report sheds light on how US companies are facing these threats. Crafted with Cint, this report was created with Baptiste Collot, Trustpair CEO, and Lee-Ann Perkins, Assistant Treasurer, and NACHA advisory board member. Download it right now!
The automation imperative: why training alone can’t combat cyber fraud
With escalating cyber threats, the traditional approach relying solely on human vigilance is proving insufficient to fight fraud. The shift in fraud management strategy towards automation is not just a trend; it’s a necessity, especially for financial executives in large companies grappling with the complexities of modern-day fraud.
The statistics are telling: 40% of companies have invested in fraud training, and 80% in cybersecurity training. However, a crucial gap emerges – nearly half of the companies (49%) find that the biggest hurdle in combating payment fraud is the inconsistency in employees adhering to fraud prevention policies. This paradox underscores a critical issue: while training is fundamental, it’s not a standalone solution in the fight against sophisticated fraud mechanisms.
Manual methods, modern threats: US businesses’ vulnerability to cyber fraud
Enter the realm of automation – the game changer in fraud prevention. It’s not just about replacing manual processes; it’s about enhancing accuracy, efficiency, and most importantly, security. Despite the clear advantages of automation, 35% of companies are still primarily using human callbacks for account validation, and 29% rely on manual emails. These traditional methods, though familiar, are fraught with risks of errors and inefficiencies, particularly when dealing with vast numbers of transactions and vendors.
Automation stands out as the ultimate defense, especially against cyber fraud. It guarantees the integrity of data through continuous verification processes throughout the payment chain. Fraudsters are becoming increasingly sophisticated, often hacking into vendor systems to divert payments. Manual checks simply cannot keep pace with these advanced threats. Yet, only 42% of organizations are conducting regular checks on banking information, leaving several windows of opportunity open for fraudsters.
Watch our On-Demand Fraud Webinar for more insights and details!
Embracing the Future: US companies on the lookout for automated prevention
The good news? There’s a growing awareness among companies about the inadequacy of their current fraud prevention measures. Approximately 38% of companies acknowledge that manual account validations are among their top challenges in fraud prevention, signaling a clear need for more automated systems. An equal percentage believe that increasing automation across core fraud prevention processes is crucial for reducing fraud. This shift towards automation is not just a defensive tactic; it’s a proactive strategy to stay ahead of fraudsters. Fraud prevention is one of the many benefits of digital transformation.
For financial executives, the message is clear: the era of manual fraud prevention is waning. The future lies in leveraging technology to combat fraud effectively. Automation, with its ability to analyze vast amounts of data and identify discrepancies in real time, is not just an option; it’s a necessity. It’s time for financial leaders to embrace this change, integrate advanced technological solutions, and fortify their organizations against the ever-evolving threat of fraud.
“Companies need to be prepared for types of frauds that they don’t even know exist yet. It’s about future-proofing and ensuring they have agile, flexible, and scaleable solutions that will help them as fraud grows in complexity.” Lee-Ann Perkins, NACHA Advisory Board Member
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