Best Practice Payment Fraud Protection

Proactive fraud prevention. Enhance your internal controls and simplify your procedures

How We Protect Your Organisation

EFTsure's Know Your Payee Solutions.

Safeguarding accuracy of payee information and protecting it. Ensures your organisation complies with Best Practice payee management principles, limits capital and reputational losses, as well as delivering workflow effeciencies.

Risk A - Point of Payment Protection

Serious risks of fraud and error exist at the point of payment, when your organisation instructs its bank to make payments to vendors and individuals. It is common for an ABA file to be created and uploaded to its online bank for payment. An editable ABA text file utilises bank account information from Vendor Master files and if this information is inaccurate, or has been tampered with, then losses, or errors, can occur.

As Banks Don’t Match Payee names to account names it may look like you are paying a correct supplier but the account number may have been altered, or is incorrect, so you could end up paying somebody else.

Best Practice dictates that individuals who authorise payments are generally not those who initially decide who is being paid and how much, creating a separation of duties and responsibilities. The challenge for the authorising person is to identify potential errors at the point of payment. Most authorisers rely on a visual check of payee information prior to authorsing a payment – “do I recognise the payee name? Does the amount look normal? and is the frequency normal?” It is relatively easy to identify an unfamiliar payee name but very difficult to identify if the associated bank account is correct. The larger number of payees the greater the risk.

Risk A - Mitigation Strategy - EFTsure's Point of Payment Solution will identify:

  • Incorrect bank account details
  • Unverified vendors
  • Duplicate payments
  • Out of range or abnormal payments
  • Invalid Payee ABN registration
  • Invalid Payee GST registration
  • Other KYP alerts based on rich data

The point of Payment Protection Solution identifies the above mentioned risks as an visual overlay on your existing online banking payment screens, providing easily readable alerts to identified risks just prior to authorising payments, ensuring those responsible have full visibility and control of the payment process.

Payment protection

Risk B - Proactive Fraud and Error Prevention

Malicious Payment Attacks

Internal and external fraudsters are exploiting advances in technology and outdated internal controls, that often rely on trust, to attack organisations, resulting in irrecoverable losses. Fraudsters can manipulate internal bank account data to their benefit, taking advantage of the fact that Banks don’t match Payee names to account numbers.

Some types of attack we protect against:

  • Genuine Invoice  - altered vendor bank account details- fraudulent or by error.

  • Phantom Vendor - fake suppliers

  • Fake invoice - legitimate supplier but fake invoice and account details.

  • Invalid ABN registration

  • Invalid GST registration

  • Manually altered payment data file (ABA)

  • Malware altered payment data file (ABA)

For examples of the types of attacks we help prevent click HERE

 

 Data Entry Errors 

No matter how diligent a team are, an organisation can incur losses as a result of simple errors in data entry. As more information is digitised, and as the number of records grow, the risk of data errors increases along with the consequences. Misdirected payments can occur and although in most cases the funds will be recovered the process will be time-consuming, costly and inconvenient to your organisation and the payee.

Risks as a result of errors

  • Out of date information – simple inability or failure to maintain up to date bank account information can result in misdirection of payments.

  • Accidental data entry - One incorrect digit entry can result in funds being misdirected to an unintended payee.  

  • Duplicate payee records – Most organisations have duplicate payee records - excessive duplicates can result in misdirected payment

Risk B - Mitigation Strategy - EFTsure's Comprehensive Verification Report

Our Software as a Service solution (SaaS) provides the ability to generate an on demand report that identifies anomalies and risks that exist in your Payee data files, such as your Vendor Master File. The report will identify 8 different categories of anomalies.

EFTsure performs a real-time cross-match of data in your files with our KYP Independant crowd-sourced database of verified payee information, ensuring that your information has not been tampered with and is accurate. The report is simple to run and can be generated at anytime.

Typically the report will initially be used to highlight anomalies and risks which will then be addressed. The report will then be run periodically, typically prior to a payment run, to ensure accuracy of payment file data, limiting the risk or fraud and error.

The report will highlight

  • Incorrect bank account details.
  • Similar bank account name but different account number.
  • Duplicate Supplier records.
  • Mismatch of supplier’s official bank account name.
  • Mismatch with supplier’s bank account name in other customers’ VMFs.
  • Invalid ABN Number.
  • ABN Number mismatch with ASIC registered Company Name.
  • Incorrect GST Status
  • Other KYP alerts based on rich data

 

Reports

The EFTsure Payment Protection solution incorporates a comprehensive set of reporting capabilities delivering risk assessment information to operational staff and management ensuring best practice control and risk evaluation procedures.

Payment protection

Payment Protection Now As Easy As 1, 2, 3

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