What if we told you that 56% of US companies were targeted by at least one fraud attempt in 2022 and 12% were targeted by more than 10 attempts? Needless to say, fraud is a top concern for businesses. But it can be incredibly tough to know what red flags to look out for and how to prevent fraud early unless you have the right internal processes and controls, anti-fraud tools and resources in place. In this research study, we explore how American companies are spotting and preventing vendor fraud and how much of an impact fraud has had on their businesses.
Fake vendors and invoice fraud topped the list of B2B fraud schemes in 2023.
The three most common types of vendor fraud in 2023 were fake identity/bad actors (43%), invoice fraud including fake invoices and duplicate invoice payments (32%) and overbilling (11%).
Spotting scams is harder than it seems.
As our study reveals, 70% of the respondents said they’d be alerted to potential vendor fraud if the vendor address or payment details originated from high-risk or international locations. Meanwhile, 12% of the surveyed businesses said they would suspect a vendor of fraud if the mailing address on their invoice only includes a PO Box. But only 5% of the respondents said they would be alerted to potential fraud if the invoice payment deviates from the company’s standard internal payment process and controls.
Anti-fraud training is futile if the content and efficacy are lacking.
Our study shows that 29% of finance teams are trained monthly on vendor fraud and another 21% are trained quarterly. Despite this regular anti-fraud training, only 34% of the respondents said they have successfully detected and prevented fraud 100% of the time.
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