If you haven’t been affected yet by push payment fraud, don’t wat till it happens to do something about it. Today, there are solutions, such as Smart ID Security, that can protect your finance department from harm. Here is a look at how this issue should continue to grow in the coming years.
A great rise of PPM Over the Next Three Years
According to a recent study, PPM should double in countries such as the United States, the UK and India, by 2026. This should bring the total losses for company in these regions to $5.25 billion at the end of that year. When you look at the predicted growth of this fraud over the years, you realize that this means there will be an increase of more than 20 % yearly, during that period. Just in the UK, the total push payment fraud in 2021 went all the way up to almost $790 million. Transpose it to 2026 and this number should be around $1.50 billion.
However, companies do not have to suffer from these losses. If they decide to counter the plan of fraudsters, by entering into a program such as the one proposed by sis-id.com, they can protect themselves from being defrauded through PPM. This collaborative platform is the first of its kind and serves to secure companies payment data. They do so through mutualization of resources, digitalisation of processes and with the use of Smart ID Security.
What is APP Fraud?
Finance Departments in companies process many transactions per day. That is especially true in large firms. Therefore, it can be hard to verify each one. APP fraud occurs when a company ends-up paying a bill through money transfer, for goods and services that were never rendered or did not exist in the first place. The problem with money transfers is that they are final. Therefore, even if a company managers notices the issue later on, there is simply nothing he can do about it.
How do Fraudsters work?
It can be very difficult to know that you are facing fraudsters. That is because they simulate being one of the suppliers that you deal with. They can also pretend to be your bank or your insurance company. If someone sends you a note from one of the suppliers that you work with, asking you to change their bank information and to proceed to payment, you should always be worried.
It gets worse. Your company can even be scammed by a person pretending to be someone that you would like to be involved with romantically. In fact, romantic scams are the second most popular PPM frauds (18.4%), a long way behind fake products (37.8%). On the third step of the podium, we find false investments (16.3%).
What are Banks doing to solve the Problem?
The truth is that the losses caused by push payments are still minimal to banks, in comparison to the revenues that they generate for them. However, they do recognise the problem and they have started to look into the issue.