60% of US and UK Businesses Report Cross-Border Payment Fraud as Pain Point
With professionals around the globe working from home during the pandemic, and many using their home networks and personal devices to conduct business, many have struggled to rebuild their cybersecurity infrastructures from scratch, and have scrambled to figure out how to protect their organizations’ data.
Bad actors have taken advantage of this by targeting companies while their defenses are down. Businesses are well aware of the heightened risk of B2B theft and fraud and the impact it can have on their financial stability. Protecting their operations from fraud is among the most pressing challenges that firms expect to face, and many businesses have already learned about these risks the hard way.
Struggling With Fraud
The rapid growth of cross-border commerce represents an enormous opportunity for firms, as $10 trillion flows between businesses around the world annually. Hurdles are still present in the space, however, as many businesses continue to struggle with cumbersome paper-based workflows, payment delays and fraud.
One form of fraud is invoice fraud. In this method, cybercriminals prey on unsuspecting companies by posing as vendors and emailing bills for work that was never performed. The money is then laundered after being redirected into overseas accounts. Victims often do not know they have been scammed until a legitimate supplier sends an invoice for the same work at a later date.
Another method targeting business leaders worldwide is the capital call scam. Using email, bad actors impersonate insurance or investment companies and ask for funds transfers that they claim are part of an investment commitment. The fraudulent documents attached to these emails then prompt targets to enter their payment details, typically requesting larger amounts than those for other types of transfers due to the nature of the transactions.