Organizations in the United States lose about 7% of their revenue to fraud.
60% of all fraud incidents within a business involve employees.
The average fraud scheme goes undetected for 18 months.

• Source: Association of Certified Fraud Examiners

Industry check-related losses amounted to an estimated $1.024 billion in 2008, up slightly from the $969 million in 2006.  The number of fraud cases also increased.

One in four money center size banks spent more than $20 million each in check fraud-related operating expense (not including actual losses).  The median expense was about $10 million for money center banks, between $500,000 and $1 million for regional banks, $50,000-$250,000 for mid-size banks and about $5,000 for community banks.

• Source: American Bankers Association, 2009

Since 2005, the Association for Financial Professionals (AFP) has examined the nature and frequency of fraudulent attacks on business-to-business payments and the industry fraud-risk tools that organizations use to control payments fraud. Continuing that research, in January 2009 AFP conducted its Payments and Fraud Control Survey to capture the payments experiences of organizations during 2008.
Thirty percent of survey respondents report that incidents of fraud increased in 2008 compared to 2007. Further, nearly forty percent of organizations experienced increased fraud activity during the second half of 2008 as economic conditions worsened in the U.S.
“The fraud attacks on payment activities have occurred at a greater frequency than we’ve seen in the past. Now, the vulnerability of all payment methods—especially checks—demands a range of fraud-fighting tools and the vigilance of financial and treasury professionals responsible for protecting organizations’ assets.”

• Nasreen Quibria, Director of Payments, AFP

Nine out of ten organizations (91 percent) that experienced attempted or actual payments fraud in 2008 were victims of check fraud. The percentage of organizations affected by payments fraud via other payment method were: ACH debit (28 percent); consumer credit/debit cards (18 percent); corporate/commercial cards (14 percent); ACH credits (seven percent); and wire transfers (six percent).

The survey includes responses from 629 corporate treasury and finance professionals including assistant treasurers, controllers, cash managers, analysts, and directors.

Download the complete report of the 2009 Payments Fraud and Control Survey here.