#USA #Rockville #Payments Fraud #Business Email Compromise #ACH Transfers

The State of Payments Fraud in 2024

Recent findings from the 2025 AFP Payments Fraud and Control Survey report indicate that a significant 79% of organizations experienced either attempted or actual payments fraud in 2024. This figure marks a slight decline from the previous year but underscores persistent threats faced by businesses regardless of the anti-fraud measures in place.

Key Findings

According to the report underwritten by Truist, the most common method employed by fraudsters remains business email compromise (BEC). This was reported by 63% of respondents, with 79% citing spoof emails as a prevalent tactic within BEC methods. Notably, vendor impersonation fraud has surged, increasing by 11% compared to the previous year, affecting 45% of organizations surveyed.

Checks emerged as the payment method most frequently targeted for fraud, with 63% encountering issues in this area in 2024. Despite this, more than 75% of the organizations surveyed have no immediate plans to reduce their dependence on checks over the next two years—a clear indicator of the deep-rooted reliance on this traditional payment method despite fraud risks.

Trends in Payment Fraud

The report highlighted important trends in the payment methods vulnerable to fraud. Wire transfers, for instance, have seen an alarming uptick in scams, with 63% of respondents indicating that this was the main focus of BEC attackers—up from 39% in the preceding survey. Conversely, ACH credits, which were once prime targets, observed a modest rise as well, climbing from 47% to 50% of incidents reported.

Interestingly, the classic BEC scams, where fraudsters impersonate senior executives to orchestrate fraudulent fund transfers, showed a decline from 57% in 2023 to 49% in 2024. However, the prevalence of third-party impersonations remains stark, with 63% of organizations affected.

Recovery Rates

Although many organizations have experienced financial loss, a portion has also managed to recover significant portions of their lost funds. In 2024, 22% of organizations managed to recover 75% or more of their lost funds, a stark drop from 41% in 2023. However, it is encouraging to note that up to 75% recovery was reported by 58% of organizations, compared to only 29% previously.

The Need for Enhanced Vigilance

Experts emphasize the necessity for heightened vigilance as fraud practices evolve. Jim Kaitz, President and CEO of AFP, remarked on the sophisticated nature of scams fueled by advancements in technology, including AI. For organizations to stay ahead, it is critical to invest in employee training to enhance their ability to detect potential fraud and to equip them with appropriate tools for defense.

Chris Ward, Head of Enterprise Payments at Truist, reiterated that mere vigilance is not enough. He stated, “Truist offers a strategic advantage through expertise and robust solutions, helping clients manage payments safely while anticipating and neutralizing fraud.” This reflects a proactive approach to not only respond to threats but to develop long-term defenses against fraudulent activities.

Conclusion

The data from the 2025 AFP Payments Fraud and Control Survey paints a concerning yet revealing picture of the ongoing challenges businesses face in combating payments fraud. As organizations navigate these difficulties, fostering a culture of awareness and equipping staff with the right tools will be essential in the ongoing battle against fraudsters. The full results of the survey are accessible for more in-depth insights and analysis.