Stampli Warns: As Regional Banks Come Under Pressure, Beware Accounts Payable Fraud
Scammers may take advantage of the confusion related to the failure of SVB and other regional banks, impersonating vendors and submitting false banking information to Accounts Payable teams
MOUNTAIN VIEW, Calif., June 1, 2023 /PRNewswire/ -- Amidst the chaos pervading the regional bank industry, companies should take steps to avoid being victimized by scammers trying to submit false banking information to obtain fraudulent payments, according to Stampli, the leader in AI-powered Accounts Payable automation.
Fraudsters impersonating a business's existing vendor might contact Accounts Payable departments, claiming that they had to switch banks and asking to update the vendor's payment details with fraudulent account information. Their messages often include a sense of urgency to pressure the recipient into taking action without verifying the information.
This scam is effective because many vendors actually are switching banks for genuine reasons, including to mitigate risk in this period of banking uncertainty.
Recommended steps to prevent AP fraud
"My advice is simple: Never assume you're not under threat," said Eyal Feldman, CEO of Stampli. "Any time money is changing hands, you should assume there are scammers looking for a way to get their hands on it. The good news is that with proper protocols and tools, accounts payable teams can stop fraud before it starts."
How the nation's leading potato grower preents AP fraud
During the harvest season, the AP team is processing thousands of invoices a month for nearly as many vendors. According to Vanessa Larimore, Accounts Payable Manager, CSS Farms does see fraudsters attempting to change vendor bank information — but none have been successful. "When it comes to banking information, we have a number of policies in place that require double checks or extra validation," says Larimore. "For example, if we receive a payment-related email from a vendor, we never call the number they give us — instead, we always Google the main number. In addition, we have software-based controls, such as requiring secondary approval to change a vendor's bank details, which doubles the likelihood that any fraudulent activity will be caught."
Larimore also recommends using bank validation software, which she gets from her business bank. This software lets her team quickly verify account owner information and check the risk level of accounts in real time. Certain risk factors, such as accounts that were very recently created, are flagged for extra scrutiny.
"The best practice is to never take an email at face value," says Larimore.
How Stampli helps its AP automation customers better protect themselves
"Among the many benefits of Stampli's AP automation solution are the numerous safeguards that help prevent fraud," said Feldman. "A combination of vigilant policies and robust tools make a company more difficult for fraudsters to target."
For further information about AP fraud, please refer to Stampli's article, What Silicon Valley Bank Teaches Us About the Need for AP Automation.
Stampli is simple for users to learn and even simpler to use, especially with Billy the Bot™ automating capture, coding, routing, fraud detection, and other manual tasks. For even greater efficiency, Stampli's core AP solution is complemented by a suite of integrated products that include Direct Pay, Credit Cards, Advanced Vendor Management, and others.
Stampli supports all native functionality for more than 70 ERPs, including those from Sage, Microsoft, SAP, Oracle, QuickBooks, and 70 others, enabling it to deploy in a matter of days, not months. For more information, visit stampli.com.
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