Payment Fraud By the Numbers
Watch our video on payment fraud by the numbers to learn recent statistics.
Contact your SouthState banker to learn more about fraud prevention tips.
View Transcript
- 96% of companies surveyed were targeted by at least 1 payments fraud attempt in 2023
- 2023 Payments Fraud Activity:
- 65% Checks
- 33% ACH Debits
- 24% Wire Transfers
- 20% Corporate Credit Cards
- 19% ACH Credits
- 4% Cash
- 3% Virtual Cards
- 1% Same Day ACH, Instant Payments
- 0% Cryptocurrency
- ACH debits increased by 3% in 2023, primarily due to fraudsters creating an ACH debit with stolen check information.
- Wire transfer fraud decreased by 7% as companes have become better at identifying wire fraud attempts via Business Email Compromise (BEC) scams.
- 90% of merchants online employ at least 1 tool designed to boost payment authorization rates, leading to a 16% decrease in corporate credit card fraud.
- 59% of companies incurred a financial loss in 2023. Of those:
- 30% recovered 0% of funds lost
- 9% recovered 10% or less of funds lost
- 20% recovered 11%-75% of funds lost
- 41% recovered more than 75% of funds lost
- Revenue loss due to fraud averages between 1% to 9%. If a company has an annual revenue of $100 million, they could be losing up to $9 million a year from fraud.
- 65% of companies report that payment fraud was caused by an external source or individual (forged check, stolen card, corporate synthetic identity fraud, etc.)
- 38% of companies experienced Business Email Compromise (BEC), with 47% reporting ACH credits as the payment method most impacted by BEC.
- For companies experiencing payments fraud:
- 85% sought assistance from their banking partners
- 66% informed their internal security/compliance team
- 39% filed a report with the police
- 27% informed law enforcement agencies (e.g. FBI)
- 3% informed the Federal Trade Commission (FTC)
- 6% talked to others (Outside Counsel, US Secret Service, etc.)
- By 2028, 76% of companies expect to send Business-to-Business (B2B) transactions via instant payments. Of these, 29% indicate that they plan to implement the same fraud protections for instant payments that are used for wire payments.
- 93% of companies who implemented callbacks to a verified and authorized contact using a phone number from a system of record (not within the email) rank this method as very effective at preventing Business Email Compromise (BEC) fraud.
- End-user education and training on the BEC threat is also very important.
- 93% of companies surveyed implemented ACH and/or Check Positive Pay to protect against payment fraud.
Source: AFP (Association for Financial Professionals) 2024 Payments Fraud and Control Report, Trustpair 2024 Fraud Trends and Insights, Veriff 2024 Fraud Industry Pulse Survey and Verifi 2024 Global eCommerce Payments & Fraud Report
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