Protect your bottom line from payments fraud

A staggering 80% of organizations experienced payments fraud in 2023, according to the Association for Financial Professionals. This is a 15% increase from 2022 and the highest rates of fraud since 2018. Business security is critical now more than ever.

B2B commerce operates on a different scale than everyday transactions. Million-dollar deals are common, and trust between businesses is essential. However, this trust can be exploited due to fraud, making the need for prevention tools an absolute necessity. While streamlining transactions is important to simplifying business, the need for extra security measures in B2B transactions remains important.

A layered approach to fraud prevention

A variety of fraud prevention tools should be used to make up a comprehensive security strategy. Creating a multi-layer transaction process can help fortify payment security, protecting both business and customer information. Here are some measures to strengthen your fraud prevention efforts:

Multi-factor authentication for additional verification 

Add an extra layer of security by requiring additional verification steps beyond just the card information. This requires users to verify their identity through multiple methods, such as a password and a unique code sent to their mobile device.

Transaction monitoring for faster fraud detection

Be vigilant about transactions with high order values or those coming from unfamiliar locations. With WEX, you can analyze transaction patterns, quickly identify anomalies, and flag any suspicious activities, providing real-time insights with greater security.

Use virtual cards for greater control and transparency

WEX virtual cards, including single-use and lodge cards, offer advanced security by limiting usage to specific vendors and amounts. This reduces the risk of fraud and unauthorized transactions by providing highly customizable spending controls. 

Virtual cards can be limited to specific vendors, amounts, and transaction types, reducing the risk of payments fraud and unauthorized transactions. They are particularly effective for one-time transactions, as they expire after use, minimizing the chance of misuse.

Enforce a strong password policy

Include strong password requirements for customer accounts and require regular updates. Educating customers about the importance of unique and complex passwords can further enhance security. 

A 2024 Forbes report found that 46% of surveyed Americans admitted to having their passwords stolen this past year. The study further revealed that many people reuse passwords across accounts or use weak passwords.

To help support and protect against hackers, enforce strong password policies. Through this, businesses can reduce the risk of unauthorized access and protect sensitive information.

Accounts payable (AP) automation

Your AP department is the anchor of your business’ finances. WEX’s AP automation solutions enhance security by minimizing manual processes, which are prone to errors and fraud. With automated reconciliation, custom spend limits, and real-time transaction monitoring, you can build a defense against fraudulent activities. 

By integrating these automated solutions, businesses can reduce the risk of internal and external fraud, improve operational efficiency, and maintain better oversight of their financial transactions.

Address verification

Address verification is typically used to prevent card-not-present (CNP) fraud in transactions conducted online, over the phone, or wherever the physical card is not handed to the merchant. This real-time check helps identify discrepancies that could signal fraudulent activity.

When a customer makes a purchase, they provide their billing address along with their credit card information. The address verification system compares the provided address to the one on file with the card issuer. If the addresses match, the transaction proceeds. If there is a discrepancy, the transaction is flagged for further review. This simple yet effective process helps businesses catch fraud in action.

WEX is here to help you build and maintain customer loyalty

A smooth and efficient transaction process is important for building and maintaining trust with your customers. By employing effective fraud prevention tools, you can minimize disruptions and enhance the overall experience, which strengthens your relationship with customers. 

Without adequate fraud prevention measures, the increased risk of fraudulent activities can lead to frequent interruptions and dissatisfaction, potentially damaging your business reputation and financial performance.

Don’t let payments fraud impact your business’ bottom line

Payments fraud has serious consequences for businesses. Financial losses from fraudulent transactions can be substantial, often leading to chargebacks and additional fees. Beyond the immediate financial impact, there’s a loss of trust. 

When a business falls victim to fraud, its reputation can suffer, making customers weary of future transactions. This erosion of trust can have long-term effects on customer relationships and overall business success. 

A secure approach that layers multiple security measures can effectively protect B2B transactions and ensure relationships remain intact. A secure fraud prevention strategy is not simply a recommendation; it’s a necessity.  

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• Current trends in finance
• Accounts payables: Terms you need to know

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

Sources:
Association for Financial Professionals
Investopedia
Federal Bureau of Investigation (FBI)
Forbes