September 25, 2018
Mark Brousseau, Analyst and Researcher in Business Process Automation, Brousseau & Associates
How vulnerable is your business to payment fraud? If your business relies on manual or semi-automated invoice processes its risk of fraudulent payments is probably higher than you think.
The average business in the United States suffers losses of 5 percent of revenue annually due to fraudulent payments, per the Association of Certified Fraud Examiners. This means that a business with $8.5 billion in revenues loses $425 million annual to fraud – a significant hit to its bottom line.
Businesses are under siege from crooks trying to perpetrate payments fraud
- Vendor schemes
- Computer-based payments fraud
- Conflict of interest
- Fraudulent financial reporting
The problem is that businesses that rely on manual or semi-automated invoice processes are largely powerless to stop payments fraud. In a manual or semi-automated invoice processing environment.
- Document history and approvals are not tracked
- There is no way to ensure that staff adhere to approval policies and separation of duties rules
- There is no chain of custody assurance
- Audit information is not readily available
- PCI Compliance is poorly controlled
- There is no way to prevent documents from being discarded or destroyed ahead of deadlines
One-in-ten accounts payable professionals surveyed by the Institute of Finance and Management (IOFM) say that improving control over security is a top priority for 2018, topping cash management.
Combining an automated invoice processing solution with a state-of-the-art enterprise resource planning (ERP) platform provides businesses with the control they need to mitigate fraud risks:
- Audit trails for every touch and modification to an invoice
- Real visibility into the actions of employees
- Configurable invoice approval and exceptions workflow paths
- Automated adherence to invoice approval policies
- Electronic retention of documents and data
- No chance of documents being discard prematurely
- Option to incorporate encryption
- Easier compliance with PCI security standards
To find out more, check out the infographic “9 Reasons Accounts Payable Must Protect Against Fraud”.
The control provided by an automated invoice processing solution such as the one from Canon Information and Imaging Solutions (CIIS) gives businesses an upper-hand against the crooks.