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59% of Firms With AI Fraud Defenses Stop Losses Before They Start

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59% of Firms With AI Fraud Defenses Stop Losses Before They Start

Businesses that combine several artificial intelligence tools to fight payments fraud are nearly twice as likely to stop at least 90% of attempted attacks before losing money, according to new PYMNTS Intelligence research.

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“Prevention First: Building a Smarter Defense Against Payments Fraud” is a PYMNTS Intelligence report produced in collaboration with Bottomline and published in September. Based on a July survey of 150 treasury and finance executives at companies in the United States with annual revenues of at least $100 million, the report examined how businesses protect payments to suppliers.

Companies combining AI detection with account verification and stronger approval procedures are making progress against sophisticated fraud, according to the report.

The findings suggested that successful prevention depended on several defenses working together, much like a security system that combines cameras, alarms and reinforced locks.

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Technology alone doesn’t guarantee protection. Businesses also need reliable supplier information, procedures for verifying account changes and controls that prevent unauthorized payments.

The report offered examples of these safeguards working together. One company caught an attempted wire transfer to a fraudulent account after its monitoring software identified an unexpected change. Another stopped an effort to redirect an ACH payment when the transaction differed from the supplier’s normal activity.


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