Payment Fraud is an ever-increasing problem, especially for those working in Accounts Payables. With the increased complexity of doing business, so many things can go wrong, especially with manual processing. So many fraudulent payments can be avoided through the use of digital technologies and robust risk management. As business people, it is essential for us to have risk management at the very core of everything we do.
Without risk management strategies in place, we are all in danger of leaving our businesses open to so many challenges that can cause severe operational and reputational damage if left unchecked. Through our interactions with our Enterprise-grade clients, we have seen first-hand the exceptional rigour required to manage risk. Our AI-powered platform enables Accounts Payables (AP) teams to effortlessly manage their Accounts Payables better through the smart use of the latest digital technologies. By having high-quality digital processes and workflows in place, we not only provide the core foundations for our clients to mitigate their AP risks but also their compliance risk and their vulnerability to payment fraud.
I was delighted to be asked by Dynamic Business to be part of the discussions with 20 other great technology leaders on how each of us approaches risk management within our own businesses. We focused on payment fraud.
We have summarised our own opinions on risk management below, but you can read the full article that includes 20 other top technology leaders on the top strategies for risk management on Dynamic Business’s website
Table Of Contents
- Staff Awareness of payment fraud techniques
- Robust Controls
- Well-designed Artificial Intelligence systems
- Multi-Factor Authentication
- Periodic Audits
In our risk management approach at SpendConsole, we acknowledge the significant problem of payment fraud, which has caused over AU$2bn in losses for Australian businesses in 2022, as per the Australian Competition and Consumer Commission (ACCC).
It’s clear that businesses of all sizes must take proactive steps to secure their financial transactions. Payment fraud threatens both finances and a company’s reputation, customer trust and operational stability. By implementing the following strategies, we help build a more secure and resilient business environment:
- Staff awareness: It’s important to make sure that everyone on your team knows about the different types of payment fraud and the newest fraud trends. Cyber.gov.au is a first-class source for up-to-date information and training resources.
- Procurement, expense and Accounts Payable procedures: To keep your business safe from fraud from both inside and outside the business, you need to set up strong controls within your Accounts Payables like delegating permissions, keeping jobs separate, and using best-in-class master data management practices.
- AI-powered tools and systems: AI-powered systems and tools that are well-thought-out can help verify and keep an eye on all transactions, quickly finding strange trends and fraudulent transactions.
- Multi-Factor Authentication: Make sure that all of your banking accounts and payment methods use multi-factor authentication. This extra layer of protection makes it much harder for thieves to access your accounts without your permission.
- Audits: Carry out internal and external audits of your business on a regular basis to find possible security holes and get a sense of its overall security. Remember that it’s not enough to just protect your bottom line; you also need to maintain your customers’ and business partners’ trust.