Prevent Vendor Fraud in SAP ECC6

B2B payment fraud can occur in an ERP system when there are vulnerabilities or weaknesses in the system’s security protocols. Fraudsters may exploit these weaknesses to manipulate transaction data, create fake invoices, or steal sensitive financial information. Here are some ways that B2B payment fraud can occur in an ERP:

• Insider threats: Employees with access to the ERP system may intentionally or inadvertently leak confidential information, alter information or commit other fraudulent activities.
• Phishing attacks: Scammers may send phishing emails impersonating legitimate vendors or employees, tricking users into providing login credentials or other sensitive information.
• Malware and viruses: Attackers may inject malware or viruses into the system, giving them remote access to sensitive data and allowing them to carry out fraudulent activities undetected. They could download employee personal information for example.
• Weak passwords and access controls: If passwords and access controls are weak, fraudsters can easily gain access to the system and manipulate data.

To prevent B2B payment fraud in an ERP, companies must implement strong security measures and protocols such as multi-factor authentication, regular system updates, and employee training. Regular monitoring and audits can also detect any suspicious activity early and mitigate damage caused by any potential fraud.

B2B payment fraud takes many forms: CEO scams, phishing, supplier fraud, etc. To summarize, it’s all the ways fraudsters can embezzle funds from a company. Scammers are more and more innovative, often resorting to sophisticated cybercrime.

One of the most common ways is using identity theft to change banking information and have money sent to fraudulent bank accounts. Thieves can use vendors or even employees to change banking credentials.

This type of fraud is difficult to detect: that’s why it’s crucial to have an automated solution like Trustpair that checks bank account ownership.

B2B payment fraud can occur in a procurement tool when there are vulnerabilities or weaknesses in the system’s security protocols. Fraudsters may exploit these weaknesses to impersonate suppliers during registration. Here are some common scenarios in which B2B payment fraud can take place within a procurement tool:

• Supplier Impersonation: Scammers can impersonate legitimate suppliers during the procurement process. They may create fake supplier accounts or compromise the accounts of real suppliers to change payment details, diverting funds to their accounts.
• Phishing Attacks: Fraudsters may send phishing emails to procurement professionals, posing as suppliers or internal team members. These emails can contain malicious links or attachments that, when clicked, compromise the user’s credentials or infect the system with malware.
• Identity Theft: Criminals can steal the identities of legitimate suppliers or employees within the organization. They may then use this stolen identity to change payment information, redirect funds, or initiate fraudulent transactions.
• Unauthorized Access: If the procurement tool lacks robust access controls and authentication mechanisms, unauthorized individuals or employees may gain access to the system. They can manipulate supplier data, payment instructions, or procurement orders.
• Vendor Database Manipulation: Fraudsters with access to the procurement tool’s vendor database can alter supplier information, including bank account details, to reroute payments to fraudulent accounts.

To mitigate the risk of B2B payment fraud in a procurement tool, organizations should implement robust security measures, such as multi-factor authentication, encryption, and regular security audits. Employee training programs on recognizing and reporting potential fraud attempts are also essential. But essentially, conducting due diligence on new suppliers and verifying the authenticity of supplier information and its bank account ownership with software like Trustpair can help prevent fraud.

Trustpair is integrated directly within SAP ECC6 interface and does not require users to leave the platform. You can register a new vendor and validate their bank account ownership automatically during the process. You can also parameter continuous monitoring through the SAP interface and finally get confirmation of vendor validation just before sending Payment proposal. We control vendor credentials throughout all the supply chain. 

Having Trustpair directly within your SAP ECC6 platform will enhance user experience: no need to switch from one tool to another and use multiple systems. Trustpair becomes a part of your ERP – almost like a module. 

Please keep in mind that Trustpair offers integrations with other versions of the SAP suite like SAP S4/ HANA. In fact, we have a dedicated S/4 HANA native connector. We also offer a cloud version if needed: contact our sales team to learn more!