Banks Can Do More to Protect Corporate Payments Against Rising Fraud

Banks are scrambling to combat rising payment fraud as their corporate clients are falling victim to sophisticated new scams. Alarmingly, 86% of large companies with revenue over $1 billion have been impacted by payment fraud. Although financial institutions themselves have invested heavily in fraud mitigation, their corporate clients are not fortified to the same extent — so they are soft targets for fraudsters.

In an era of AI and deepfakes, traditional bank letters — the official documents used to share banking details — are all too easy to forge. Banks and credit unions must implement better ways to verify whether corporate clients have truly approved beneficiaries before processing payments. For cross-border payments, they need the ability to validate the ownership of bank accounts around the globe. These days, it's not enough for banks to simply follow established payment protocols. They need to add layers of modern, technology-based anti-fraud solutions.

In this video, American Banker speaks with Nithai Barzam, President and COO of nsKnox Technologies, which has been protecting enterprises against payment fraud for almost a decade. Barzam shares his insights about what banks and credit unions can do better to protect their corporate clients from payment fraud, including:

●      The weakest links in existing payment protocols
●      Why AML and KYC regulations are inadequate against global crime rings today
●      Risks to banks from corporate clients' weak anti-fraud protections
●      How banks can take security beyond signatory rights
●      Technology-based anti-fraud solutions that also open the doors to new revenue opportunities

View the interview and learn about the steps banks can take to better protect their corporate clients from payment fraud.

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Safeguard Client Payments with Three Layers of Anti-Fraud Technology
How can banks and credit unions protect business customers, and themselves, from payment fraud? There is no easy answer, but financial institutions can heighten protection for clients by implementing layers of anti-fraud technology.