2009 AFP Payments Fraud and Control Survey
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Nearly three-quarters of the 629 surveyed companies experienced attempted or actual payments fraud in 2008. Checks were the payment method most subject to fraud at 91% and were responsible for the greatest financial losses at 60%. The estimated median value of payments fraud decreased 40% from 2007 to 2008. The most widely used risk mitigation tools for checks were positive pay and reverse positive pay at 82%. For ACH payments, the most used tools were ACH debit blocks at 71% and ACH debit filters at 55%.
2009 AFP Payments Fraud and Control Survey
- 1. Payments Fraud Payments Fraud Working Group Highlights of the 2009 AFP Payments Fraud & Control Survey Nasreen Quibria Association for Financial Professionals May 19, 2009
- 2. Agenda Survey Methodology Fraud Attempts & Losses by Payment Method Risk Mitigation Tools Questions www.afponline.org 2
- 3. Survey Methodology • Annual survey conducted since 2005 • Online survey • 629 companies with annual revenues ranging from below $50 million and above $20 billion were surveyed in January of 2009 www.afponline.org 3
- 4. Attempted or Actual Payments Fraud 80% 72% 71% 71% 70% 68% 60% 55% 50% 40% 30% 24% 20% 10% 6% 0% -1% 0% 2004 2005 2006 2007 2008 -10% Attempted or Actual Payments Fraud % Growth Almost three-quarters of organizations experienced attempted or actual payments fraud. www.afponline.org 4
- 5. Fraud Attempts & Losses by Payment Method Responsible for Payment Method Subject to Suffered Financial Greatest Financial Fraud Loss from Fraud Loss Check 91% 47% 60% ACH 17% ACH Credits 7% N/A 3% ACH Debits 28% N/A 5% Corporate/Commercial Cards 14% 44%/17%* 10% Consumer Cards (Debit/Credit) 18% N/A 20% Wire 6% N/A 1% NOTES: • N/A - Data was not collected in the survey • *Of organizations subject to fraud, in using own corporate/commercial cards to make payments 44% of organizations suffered a financial loss; only 17% or one out of six organizations suffered a financial loss from accepting corporate/commercial cards www.afponline.org 5
- 6. Check Fraud • Types of Check Fraud • Remote Deposit Capture • “Holder in Due Course” www.afponline.org 6
- 7. Origins of Card Fraud Internal Party 32% Unknown external party Third-party or outsourcer 70% 11% Employee 78% Outside Party www.afponline.org 7
- 8. Estimated Median Value of Payments Fraud $30,000 0.2 $26,600 $25,000 9% 0.1 $23,300 0 $20,000 $15,200 -0.1 $15,000 $13,900 -12% -0.2 $10,000 -0.3 $5,000 -0.4 -40% $0 -0.5 2004 2006 2007 2008 Estimated Median Value of Payments Fraud % Growth www.afponline.org 8
- 9. Payments Risk Mitigation Tools Revenues Revenues All over $1 under $1 Respondents billion billion Positive pay/Reverse positive pay 82% 87% 79% Checks Payee positive pay 50 60 41 “Post no checks” restriction on depository accounts 34 42 29 ACH debit blocks 71 79 60 ACH debit filters 55 62 49 ACH ACH positive pay 19 19 18 Universal Payment Identification Code for ACH credits 5 7 3 Other Other 5 4 5 www.afponline.org 9
- 10. Thank you… Nasreen Quibria Director, Payments Association for Financial Professionals Phone: 301.961.8676 Email: nquibria@afponline.org http://www.afponline.org/pub/pdf/2009_Payments_Fraud_Survey.pdf www.afponline.org 10