#United States #Rockville #AI Adoption #Payments Fraud #Business Email Compromise

Rising Threat of Payments Fraud in the US

In a troubling revelation, the 2026 AFP Payments Fraud and Control Survey has shown that a staggering 76% of organizations in the United States fell victim to payments fraud in 2025. This alarming statistic underscores the increasing risk that businesses of all sizes face in today’s digital environment.

Insights from the Survey

The report, underwritten by Truist, highlights that business email compromise (BEC) has emerged as a significant threat, affecting 74% of organizations—a notable increase from previous years. Furthermore, organizations continue to rely heavily on checks, which remain the most frequently targeted payment method for fraud, accounting for 58% of reported cases.

Despite the introduction of advanced technologies such as artificial intelligence (AI), the adoption rate among organizations remains disappointingly low, with only 17% utilizing AI to combat payments fraud. This can be attributed to various factors, including concerns over costs, technology maturity, and an overreliance on existing security measures.

The Impact of AI in Fraud Prevention

For those organizations that have embraced AI, the results are promising. Approximately 49% reported enhanced efficiency in fraud reporting, while 45% noted improved capabilities in detecting deepfake technology. Additionally, 43% of organizations employing AI highlighted better real-time identification capabilities, suggesting that AI could play a critical role in mitigating fraud risks.

However, the slow pace of adoption is troubling, especially as the landscape of fraud continues to evolve. The rise in BEC attacks, coupled with the vulnerabilities associated with traditional payment methods, paints a concerning picture for the future of business transactions.

Challenges of Traditional Payment Methods

Checks, despite their associated risks, still play a crucial role in many organizations’ financial operations. Remarkably, about 72% of companies using checks stated their intention to continue this practice, often due to vendor requirements. This persistent reliance on checks, combined with inadequate fraud detection measures, leaves organizations open to significant financial losses.

The Role of Treasury Departments

Treasury departments are on the frontline of fraud detection, with survey results indicating that they discover 83% of attempted fraud incidents and 55% of actual fraud. Their critical functions include monitoring bank activities, managing fraud controls, and coordinating recovery efforts, often collaborating with accounts payable, banking partners, and vendors.

As fraud continues to be a pervasive threat, integrating AI technology within traditional controls has become essential. According to Tom Hunt, CTP, Director of Treasury Practice at AFP, this integration ensures that treasury functions stay ahead of evolving fraud tactics. Chris Ward, Truist Head of Enterprise Payments, emphasizes that fraud prevention must adapt to a changing operational model, focusing on verification, disciplined approvals, and timely detection.

The Future of Payments Security

The 2026 AFP Payments Fraud and Control Survey encapsulates how U.S. businesses must navigate an increasingly perilous fraud landscape. With the persistent threat of payments fraud and the slow adoption of AI technologies, companies face daunting challenges. Moving forward, it is crucial for businesses to reevaluate traditional payment methods, enhance their fraud detection frameworks, and adopt innovative solutions to safeguard their financial operations against fraud threats.

While the emphasis on treasurers’ roles in fraud detection is significant, the ultimate responsibility lies in cultivating a culture of continuous improvement within organizations. Combatting payments fraud requires both technological advancement and a proactive approach to security that prioritizes trust and efficiency in transactions.

Conclusion

As organizations continue to grapple with the implications of payments fraud, the findings from the AFP survey serve as a call to action. Businesses must not only recognize the threats they face but also invest in solutions that can protect them in an increasingly complex and digital financial world. Addressing payments fraud effectively today will pave the way for safer financial transactions in the future.