How Basware is Tackling Payment Fraud
The issue of fraud across the supply chain sector was raised during the PwC Global Economic Crime Survey 2024, which revealed that procurement fraud has been among the top three most disruptive economic crimes globally in the past 24 months, following cybercrime and corruption.
Basware has researched and found that 56% of CFOs are being ordered onto fraud prevention courses by their superiors, a sign of how seriously CEOs are taking this threat.
Basware enables finance leaders in global enterprises to automate complex, labour-intensive invoice processes and ensure compliance with regulatory changes. Its AP automation and invoicing platform enhances efficiency while reducing errors and risks.
Known for combining true automation, comprehensive coverage, and deep expertise, Basware handles over 220 million invoices annually for some of the world’s most efficient AP departments.
As a leading AP automation and invoice processing company, Basware is using AI to help tackle fraud across the industry.
Jason Kurtz, CEO of Basware, sat down with Procurement Magazine to discuss the issue of fraud.
Why do you believe CFOs are increasingly being sent on fraud prevention courses?
CFOs are operating in a very challenging time, with stubborn inflation, high interest rates and surging levels of financial crime putting them under increased scrutiny.
Our research revealed that 56% of CFOs have been ordered on fraud prevention courses by their superiors, a sign of how seriously CEOs are taking this threat.
Business Email Compromise (BEC) is still a very popular route in for criminals, whereby they hijack legitimate email accounts or create similar email addresses to pressure members of the finance team to authorise fraudulent transactions.
Other tactics include submitting multiple duplicate invoices and vendor impersonation scams, with alternate bank details to divert legitimate payments into criminal accounts.
The surge in fraud attempts since COVID and sophisticated AI, reported by 65% of businesses, highlights the urgent need for CFOs to protect their organisations.
Just how damaging can fraud be to a procurement operation?
Fraud can be extremely damaging to procurement operations, leading to significant financial losses and operational disruptions.
In 2023, fraud scams and bank fraud scams resulted in US$485.6 billion in global losses, straining procurement budgets and causing resource cutbacks.
The 2024 AFP Payments Fraud and Control Survey Report noted that 30% of organisations couldn't recover funds lost to payments fraud.
With 68% of organisations targeted by BEC in 2021 and 47% concerned about invoice fraud, procurement operations are particularly vulnerable to these threats.
What is Basware doing to help tackle this issue?
Basware is tackling financial crime by utilising AI-driven tools to detect and prevent fraud.
With 70% of CEOs increasing their anti-fraud budgets, Basware’s integration of advanced AI solutions is crucial for combating threats of invoice fraud, thereby safeguarding financial integrity.
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