In today’s rapidly evolving business landscape, procurement professionals face an increasingly complex challenge: maintaining the integrity of their source-to-pay (S2P) processes while combating sophisticated fraud schemes. As technology advances, so do the methods employed by fraudsters to infiltrate procurement systems, alter data, and reroute financial flows. The surge in vendor fraud attempts has become a critical concern, with 96% of businesses reporting at least one fraud attempt in 2023, and 47% experiencing at least one vendor fraud attempt.
To address these growing threats, innovative solutions are emerging, combining the power of procurement platforms and fraud prevention technologies. One such solution is the native integration of Trustpair’s bank account validation capabilities into Ivalua’s comprehensive source-to-pay platform. Explore the benefits of this integration and how it’s reshaping the landscape of vendor onboarding and fraud prevention in procurement.
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The Growing Threat Within the Source-to-Pay Cycle
The source-to-pay process has become increasingly vulnerable to fraud. Technological advancements have made it easier for fraudsters to mimic legitimate business communications, using tools like deepfake technology and sophisticated phishing attacks. This trend is evidenced by the 71% increase in fraud incidents between 2022 and 2023, highlighting significant vulnerabilities in traditional vendor verification methods.
Stephen Carter, Director of Product Marketing at Ivalua, emphasizes the gravity of the situation:
“Most cyber attacks aim at extracting data and then using that data for something else, for malicious means – sometimes to edit supplier records and divert funds.”
This underscores the critical need for robust fraud prevention measures integrated directly into existing procurement tools.
The Importance of Secure Vendor Onboarding
Vendor onboarding represents a crucial milestone in the S2P process. It’s the foundation upon which the entire supplier relationship is built, and its security can determine the integrity of all subsequent transactions. Poorly onboarded suppliers can lead to a cascade of issues, including erroneous payments, fraud, and compliance breaches.
Nicolas Pang, Pre-Sales Engineer at Trustpair, highlights the significance of this stage:
“Our solution comes into play at the supplier’s onboarding stage, from the moment the supplier enters information about his company, bank account, etc. This triggers a Trustpair evaluation that will appear directly on the supplier record.”
The Trustpair x Ivalua Native Connector: A Seamless Solution
The integration of Trustpair’s bank account validation capabilities into the Ivalua platform offers a powerful solution to these challenges.
Here’s how it works:
- Seamless Integration: The Trustpair add-on is directly integrated into the Ivalua portal, requiring no additional platform or log in.
- Automated Verification: For each new vendor entry, a Trustpair account ownership verification is automatically triggered on the vendor’s banking data.
- Comprehensive Checks: The evaluation checks the vendor status (company ID, existence, etc.), the bank account status (correct format, account is open, etc.), and the correlation between the two.
- Real-Time Results: The Trustpair evaluation appears directly on the vendor’s approval workflow in Ivalua, with a contextualized assessment and explanation.
- Ongoing Monitoring: The automated evaluation is triggered in case of any data change request during the S2P process, whether it comes from a vendor directly or someone internally.
Key Benefits of the Trustpair x Ivalua Native Connector
- Enhanced User Experience: The integration is so seamless that users often don’t even realize they’re using a different tool. As Stephen Carter notes, “The power of the solution is that it’s straightforward and to be honest, most customers don’t even know they’re using it. That’s the entire point of a native connector.
- Rapid Deployment: As an add-on to the Ivalua platform, the native connector can be live within 48 hours of request, requiring no specific development.
- Comprehensive S2P Security: Each new vendor’s banking data is thoroughly checked, and any change request during the S2P process is equally monitored, ensuring end-to-end security.
- Increased Efficiency: By automating vendor data checks, teams save time and increase efficiency, eliminating the need for manual verifications via email or phone
- Enhanced Traceability: All controls and actions are traceable, allowing users to see precisely whether controls have been carried out, by whom, and when. This not only ensures compliance but also reduces the risk of internal fraud.
- Data Integrity: With systematic control of vendor data at onboarding, any further dispatch to the ERP system is guaranteed to be 100% safe.
Conclusion
In an era where fraud attempts are becoming increasingly sophisticated and frequent, the integration of Trustpair’s bank account validation capabilities into Ivalua’s source-to-pay platform represents a significant leap forward in procurement security. By automating and streamlining the vendor onboarding process, this solution not only enhances fraud prevention but also improves operational efficiency and compliance.
As Stephen Carter succinctly puts it:
“What’s most important is the security you’re giving the customers, the ability to reduce fraud. Unfortunately, fraud is here to stay and you can’t remove these external risks: however, your solution manages to remove the opportunity.”
For procurement professionals seeking to fortify their processes against fraud while improving efficiency, the Trustpair x Ivalua native connector offers a powerful, user-friendly solution. By implementing this integrated approach, organizations can ensure they’re starting supplier relationships on the right foot, with accurate data and robust security measures in place from day one.
In the ongoing battle against procurement fraud, this integration stands as a testament to the power of collaboration between specialized solutions, offering procurement teams the tools they need to navigate the complex landscape of modern business transactions with confidence and security. Request a demo to learn more about the integration!
