Quiz: Payments fraud and business risk
Here’s a quick quiz to help you gauge your payments fraud knowledge. (Test yourself before reading ahead for the answers.)
2. In 2012, credit and debit cards were targeted in 29% of fraud attacks. What percent of businesses exposed to fraud attacks in 2013 said cards were targeted?
3. The typical financial loss incurred by companies from payments fraud last year was:
4. The most popular vehicle for payments fraud in 2013 was what?
a) Credit or debit cards
b) Wire transfers
The quiz is based on information I found in the 2014 AFP Payments Fraud and Control Survey. This annual report is a really valuable picture of the fraud landscape for businesses. Released on April 3, 2014, by the Association of Financial Professionals, it is based on a survey of more than 5,500 AFP members, including large and small businesses, non-profits, and government entities.
Two findings in this year’s survey caught my attention:
* In the wake of recent high-profile security breaches, 63% of organizations have either adopted additional security measures or are planning to do so in the near future. Those measures range from secure signature stamps, electronic signatures, payment data stored with third-party vendors, and increased layers of security.
* Debit and credit card fraud is clearly on the rise. For businesses that accept card payments need to spend some time looking at their security policies and systems — particularly in anticipation of changes coming in 2015 that will shift liability for payments fraud from card issuers to merchants. I’ll write more in detail soon about how you can prepare your business for that change.
Now for the answers to the quiz: You are correct if you chose “c” for each question.