Red Flag Checklist for Bill Pay Fraud

December 9, 2020

Small business clients aren't always aware of the processes and workflows available to help mitigate risk as they pay bills and spend money.  Here's a quick Red Flag check to help your clients see if their AP process could be putting their business at greater risk for fraud: 

🚩 Paper Checks — Paper checks contain all the information fraudsters need to steal a client’s money. Paper limits transparency, can be easily manipulated, stolen, or destroyed, and often slows down critical processes.

🚩 No defined AP workflows — Paper isn’t the only place fraud happens. Business email compromise (BEC) attacks use email systems to impersonate someone from within. If a clearly defined workflow with user roles isn’t established and followed, the business leaves themselves open to BEC attacks.

🚩 Sharing banking account login information — People come and go. When clients share confidential information such as banking logins, every person they give it to carries a risk and requires changes if someone leaves the business. 

🚩 Ignoring fraud prevention tools — Mitigating risk isn’t a manual process: something is bound to be left behind. Clients should be aware of the tools that can help. 

The good news is that an automated AP workflow can help with fraud prevention. Here’s just a few ways: 

🟢 Paperless payment methods that restrict crucial banking information and provide elevated levels of security 

🟢 Bill Approval Workflows that clearly define steps and roles 

🟢 Separation of Duties / User Roles that are customizable to fit your needs 

🟢 Always-On Audit Trial with user accountability, reconstruction of events, and litigation support


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