Payments fraud continues to run rampant across the country with nearly half of organizations experiencing some type of fraud in the last 24 months and 52% of those companies having annual revenue of over $10 billion, according to a report from PYMNTS. Out of those businesses that were surveyed, one in five cited a financial incident that cost the company more than $50 million. Can you imagine if these business owners had that cash lost from payments fraud back in their pockets?
Payments fraud impacts both small and large businesses alike so it’s crucial to take the right financial planning steps as the new year approaches. If you have some extra budget set aside in the new year, why not dedicate it to hiring a financial services consultant to help you out? At Richmond Financial Services, I provide consulting services to take your business to the next level and increase profits in 2023. Visit my website or call 617-843-5700 to learn more.
1. Explore New Anti-fraud Technology
Out of recently surveyed B2B firms in retail and manufacturing, 32% were satisfied with their current anti-fraud technology, 41% were moderately satisfied, and 27% were not satisfied. Based on these numbers, firms in the B2B need to explore new and emerging anti-fraud technology until they are satisfied with their ROI.
When exploring new anti-fraud options, look for Fintech that expedites the onboarding processes for new customers to help build strong customer service and get new revenue in the door quicker. The longer onboarding takes, the more likely you are to lose cash. For example, 30% of B2B organizations that have lost more than 5% of their annual revenue to fraud take about one month or even longer to onboard a new client.
2. Fight Chargebacks with AI
There are several new Fintech startups focused on eliminating chargebacks for good. AI technology is designed to automatically flag incorrect chargebacks so employees don’t have to. This is useful because about 85% of all chargebacks are incorrect and result in over $125 billion in annual losses.
Then the system integrates with your credit card processors and gathers evidence refuting illegitimate chargebacks and submits that information to credit card companies. All you have to do is wait patiently for results.
3. Remain Optimistic
Fighting fraud is a long and challenging process so you must remain open-minded and available to new ideas. 62% of FIs are seeing an increase in financial crime, and CEOs are overwhelmed with the responsibility of addressing this issue. You’re not alone in the fight against fraud and don’t be afraid to network with other business owners to gain insight into what works for them.
