Wire Transfer Fraud

Fraud and digitization: Financial departments lag behind

Fraud Study Part 1 trustpair

In order to understand the strategic positioning of companies to fight wire transfer fraud in 2021, Trustpair, Accenture and Option Finance unveil their latest fraud study. This growing issue, which is now a real preoccupation of mid-caps and large groups, is part of a dual logic of digitization of financial services and deployment of effective tools to protect themselves against fraud threats.

However, the study reveals an ambivalence: sensitivity to risk is increasing, but few companies are equipped with a digital solution to prevent transfer fraud, or intend to invest in this type of tool as of 2021. The feeling that “it only happens to others” is still quite present, and the decision to invest in such a solution often comes after the occurrence of a fraud or an attempt just avoided.

10 years ago, no specific anti-fraud solution was available. There were more talks regarding the implementation of a control framework.” – Elodie Bananier, Senior Manager at Accenture France – Head of Fraud and Financial Security, Know Your X and Market Integrity offerings

Low penetration rate in Financial Departments

The conclusion is clear: only 16% of the companies surveyed use a technological solution to fight fraud. At first glance, this figure may seem surprising, but it can be explained by the emergence of a new market: an equipment market, not a replacement market.

Businesses fighting wire transfer fraud in 2021 - Trustpair, Accenture, Option Finance - equipment rate

“Fraud is closely tied to digital technology. Although the fight against fraud is a top priority for many businesses and a key part of any digitisation process, only 16% of companies use a digital anti-fraud solution. Most companies rely on manual processes despite facing highly advanced cyber tools. Their means on this front are incredibly imbalanced.” – Baptiste Collot, CEO at Trustpair

The fight against fraud is part of the digital transformation process

For 79% of companies, fighting against wire transfer fraud is op priority for their digital transformation

Businesses fighting wire transfer fraud in 2021 - Trustpair, Accenture, Option Finance - fraud investment

“Although Financial Departments are aware of the challenges of the fight against fraud and see digital transformation as a top priority, they must still improve the quality of Transfer Fraud Detection tools at their disposal.” – Elodie Bananier,Senior Manager at Accenture France − Head of Fraud and Financial Security, Know Your X and Market Integrity

Businesses fighting wire transfer fraud in 2021 - Trustpair, Accenture, Option Finance - Part 3

For 86% of CFO’s, the fight against fraud will be a key issue in 2021

Weak investment projects relating to safety issues

“Today, companies are aware that they need to take action, implement controls, and that these initiatives are part of a project to accelerate digitisation. A lot must be done to publicise these solutions, give credence to their potential and provide useful feedback to market players.” – Elodie Bananier, Senior Manager at Accenture France − Head of Fraud and Financial Security, Know Your X and Market Integrity

Businesses fighting wire transfer fraud in 2021 - Trustpair, Accenture, Option Finance - digital investment

Companies are asking themselves “WAIT or BUY”

A digital anti-fraud solution is often considered expensive and complex to implement, meaning many companies prefer to WAIT before adopting such a tool. They then take the time to try out and assess several solutions to find one that best meets their needs. But it’s worth remembering that a fraud case is almost always an emergency! And it is all too often when the company faces a critical situation that the question of whether to BUY arises. Don’t wait to be defrauded to digitise your processes!

What do Financial Departments expect from an anti-fraud solution?

“There is a strong need for reassurance and education on the market. While the first companies to implement anti-fraud solutions were innovative, the market is gradually evolving towards a more holistic and mature dynamic.” – Baptiste Collot, CEO of Trustpair

When asked about their level of confidence in digital anti-fraud solutions, the average score given is 6.4/10. At the same time, the expectations of financial departments regarding these solutions are reliability, simplicity, automation of tasks, security, efficiency and rapid use.

Businesses fighting wire transfer fraud in 2021 - Trustpair, Accenture, Option Finance - anti-fraud solution rating

6,4 the average confidence rating given solutions

Companies are aware that adopting an anti-fraud solution can prove very beneficial, but are also wondering whether to adapt and organise their business model around the solution to implement a comprehensive anti-fraud approach. – Elodie Bananier, Senior Manager at Accenture France − Head of Fraud and Financial Security, Know Your X and Market Integrity

Want to know more?

Discover all the results of the Fraud 2021 study conducted by Trustpair, Accenture and Option Finance, in partnership with Spoking Polls: Companies facing the risk of transfer fraud in 2021.

Fraud Study Trustpair

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