B2B networks that employ cutting-edge technologies are only as strong as their weakest link.
Fraudsters will look for any third-party or ecosystem flaws as business-to-business (B2B) collaborations become increasingly online-first and more organizations digitize their operations.
This comes as Uber announced a 7-year agreement on Feb. 13 to move its information technology completely into the cloud from its own data centers, using infrastructure platforms provided by both Google and Oracle, and as a cyber breach at ION Trading Technologies, last month demonstrates the downward cascade a successful attack on underlying infrastructure can have on broader marketplace partners, participants, and vendors.
“So many brag about speedier, real-time, instant payments,” he says. “While it is convenient to pay and receive money rapidly, it also opens the door to ‘speedier fraud’ and decreases the window of time for confirming compliance with anti-money laundering and anti-terror funding legislation.”
According to the findings of “The State of Fraud and Financial Crime in the United States,” and Featurespace collaboration, the frequency and intensity of targeted attacks on financial institutions (FIs) with more than $5 billion in assets resulted in nearly $120 million in average fraud costs in 2022.
Almost two out of every three big banks report an increase in financial crime.
The ramifications of this recent rise in payment fraud assaults include billions of dollars wasted, exacerbated by reputational damage that might take years to repair, making it important for companies to secure every ingoing and outgoing payment they send or receive.