As B2B fraud threats like the business email compromise (BEC) scam or internal employee theft continue to grow for businesses large and small, experts are urging business owners and executives to take the lead in combatting fraudsters.
Indeed, the latest cases rounded up by PYMNTS show that the threats of external BEC scams and internal accounts payable fraud are alive and well. However, they also reveal opportunities for financial institutions and other service providers to carry some of the burden of fraud prevention.
KPMG, for example, recently announced a partnership with cybersecurity firm nsKnox to deploy its KPMG Secure Payments tool. The solution, to be first distributed to clients of KPMG Israel's operations, is designed to combat supplier payments fraud from a range of sources, including cyberattacks, internal fraud, social engineering and data manipulation.
Barclays similarly bolstered its B2B fraud fight by recently upgrading its biometric authentication technology in partnership with Hitachi's VeinID technology. The financial institution's updated finger-vein scanner strengthens authentication measures for corporate transactions.
Below, PYMNTS looks at some of the latest instances of B2B payments fraud, as well as a few stories in which B2B service providers are wielding the power of technology to combat the risk for business customers.
"Hundreds of thousands of pounds" are being lost to invoice fraud, according to the Isle of Man Bank, which issued a warning to businesses on the island. Officials noted that invoice fraud occurs on a "regular basis," according to 3FM reports. The Isle of Man Bank also warned that it continues to see invoice fraud scenarios in which cyber hackers have infiltrated company emails, or the emails of those businesses' customers.
According to the Magnolia Reporter, $3.3 million was defrauded from lenders by an Arkansas man in a rare case of small business loan fraud. The man has been sentenced to 33 months in prison for the scheme that reportedly involved invoice fraud for the purpose of obtaining an equipment financing loan. Reports said the man falsified an invoice for a tractor that he had not actually purchased, but instead financed through another lender. He also reportedly admitted to other instances of small business loan fraud that accumulated $3.3 million in losses to AgHeritage Farm Credit Services, BancorpSouth and Regions Bank.
Nasdaq reported this week that nearly $5.3 million was allegedly embezzled by an Apple supplier's accounting executive. The reported scam took place over four years at Apple supplier Japan Display Inc., which released a statement last week noting that it had dismissed the employee and was cooperating with police. The accountant reportedly made fraudulent payments to a false company, though exact details of the accounts payable fraud were not reported.
Spain startup buguroo recently raised $11 million to combat fraud. The company announced that Ten Eleven Ventures led its Series A funding round, as reported by IBS Intelligence, while Seaya Ventures and a range of existing backers, including Inveready and Conexo Ventures, also participated. Buguroo operates deep learning technology to detect and prevent online fraud for financial institutions. Its funding will go toward geographic expansion into the U.S., U.K., France and Germany, reports said.