The 2012 AFP Payments Fraud and Control Survey, sponsored by J.P. Morgan, found that two-thirds of companies were hit by attempted or actual payments fraud during 2011, but few incurred financial loss because they took measures to mitigate exposures.

Fraudsters aim for convenient targets of opportunity, especially big companies that handle many checks.  The 2012 survey revealed that larger organizations were targeted more frequently than smaller ones (81 percent versus 55 percent) and with a 22 percent higher average loss. Industries with greater consumer access such as retail and insurance have fraud attack rates 15 to 20 percent higher than other industries.

More than 80 percent of companies surveyed employ best practices such as positive pay and daily reconciliations to mitigate fraud.  When they do experience losses, it is often because they failed to comply with their own fraud policies.

Most organizations have aggressively pushed to achieve 100 percent electronic payroll to avoid this problem.The 2012 AFP Payments Fraud and Control Survey, sponsored by J.P. Morgan, found that two-thirds of companies were hit by attempted or actual payments fraud during 2011, but few incurred financial loss because they took measures to mitigate exposures.

Fraudsters aim for convenient targets of opportunity, especially big companies that handle many checks. The 2012 survey revealed that larger organizations were targeted more frequently than smaller ones (81 percent versus 55 percent) and with a 22 percent, higher average loss. Industries with greater consumer access such as retail and insurance have fraud attack rates 15 to 20 percent higher than other industries.

More than 80 percent of companies surveyed employ best practices such as positive pay and daily reconciliations to mitigate fraud. When they do experience losses, it is often because they failed to comply with their own fraud policies.

The survey revealed a significant vulnerability: pay outs to check cashers (bank and non-bank) from holder in due course situations. Most organizations have aggressively pushed to achieve 100 percent electronic payroll to avoid this problem.