In a world of sophisticated fraud tactics in payments, finance leaders are in need to face challenges.
According to a guide published by software company Eftsure, accelerating AI capabilities, and complex international payment networks created an environment where traditional analogue controls are no longer sufficient.
Because of this, finance leaders are now to deal with protecting their organisations from increasingly convincing fraud attempts and maintaining the speed and efficiency that modern business demands.
Eftsure poses that these challenges are “particularly acute” when dealing with international vendors, where language barriers, time zone differences, and unfamiliar banking systems create additional vulnerabilities that fraudsters actively exploit.
However, strengthening payment controls does not equate to sacrificing efficiency, as a systematic approach to fraud prevention will also streamline legitimate transactions, reduce processing times, and improve vendor relationships.
Eftsure mapped out a five-point control framework to address technology, processes, and people in regards with this matter:
- Assessment – This involves mapping the organisation and payments, the internal “crown jewels” or assets, and the company’s overall risk profile.
- Technology – This encompasses searching for solutions that integrate with existing enterprise resource planning and AP systems, minimising fragmented solutions and tech stacks, and ensuring that technology enhances rather than replace human judgment.
- Process – This involves establishing clear workflows and anomaly detection, along with mandatory protocols for any changes to vendor banking information, as well as building exception handling procedures that are secure but not so cumbersome that they encourage workarounds. Eftsure also recommends planning for and implementing routine pressure testing.
- People – Organisations must conduct regular, tailored training, help their team recognise red flags, and foster an environment in which staff feel comfortable and well-equipped.
- Partnership – This means cultivating relationships with entities like technology providers, banks, payment processors, and other partners that prioritise security, as well as building an international network and prioritising vetting new vendors thoroughly before establishing payment relationships.
