How your payments services provider can help.
A recent report by consultancy PWC highlights how fraud is a serious problem for many businesses in 2020. Nearly half of the 5,000 companies surveyed for the report (of which 28% had annual revenues of less than USD10mn) had experienced fraud over the preceding two years. On average, those who had been victims of fraud had suffered six incidents over that period. The total losses to the companies surveyed amounted to USD42 billion.
There are many different kinds of fraud. It includes bribery & corruption. It includes the misappropriation of assets by employees and executives. PWC’s report found that cyber-crime was more common than either of these. Most frequent, however, was fraud carried out by customers against the company surveyed.
Fraud by customers was most disruptive for 27% of the financial services companies surveyed. It was most disruptive for 13-14% of companies in each of the health and technology/ media/ telecommunications industries. Customer fraud was most serious for 18% of B2C businesses, or marginally more so than asset misappropriation (17%) or cyber-crime (16%).
Across all businesses, customers were the largest group among external perpetrators of fraud (26% of the most disruptive instances). Customers were also most important in terms of numbers of crimes (35% of the total, and more than in 2018).
PWC notes some good news. Customer fraud is ‘also one of the frauds where dedicated resources, robust processes and technology have proved effective for prevention’.
At Safenetpay, we are optimistic too. Payments are a central element of customer fraud and a number of other kinds of fraud. The services that we offer comply with the strictest security standards. That means that, your money — and your customers’ money — is safe. If you have questions or need help, we’re always a phone call, email, or message away.
No matter how payments are made to or from your account, they are checked by our - and banks’ - systems for unusual features - which can be brought to your attention.
You benefit from the security that is fundamental to our business. Payments through Safenetpay can only be made by those of your staff members who are specifically authorised by you. We are regulated by the UK’s Financial Conduct Authority (FCA) and must comply with its strict requirements. As a client of Safenetpay, you have a UK bank account and sort code, as well as an IBAN number: all payments are subject to the safety features that are inherent to the UK and European banking systems. Finally, all balances that are in your account with Safenetpay do not sit on our balance sheet: instead, they are deposited with first class UK and European banks.
Your payments services provider can and should play a key role in protecting your business from fraud.