Results from the 2012 Association for Financial Professionals (AFP) Fraud and Control Survey conducted in January 2012 have been recently published. In its eighth year, the AFP Fraud and Control Survey highlights the situation, methods, and frequency in which the majority of organizations fall victim to payment fraud.

Highlights from the survey create several interesting talking points. Firstly, with two-thirds of organizations still experiencing attempted or actual payments fraud, it seems that despite relative stability in the US financial system seen in 2011, there is still a need for organizations to closely manage its exposure to fraud. Large organizations should be especially diligent in minimizing its risk to fraud -
81 percent of organizations with annual revenues over $1 billion were targeted for fraud, 26 percentage points above organizations with annual revenues under $1 billion.

Another interesting result from the survey shows the number of payment accounts can affect the likelihood that a large organization will experience payment fraud. 91 percent of large organizations with annual revenue over $1 billion with more than 100 payment accounts were subject to payment fraud in 2011 compared to the 76 percent of similarly sized organizations with 25 or fewer payment accounts. Perhaps consolidating payment accounts where possible could help an organization reduce its likelihood to experience fraud.

Finally, although payments fraud occurred with greater frequency in 2011 than that reported for 2004, only 26 percent of organizations that were victims of actual and/or attempted payments fraud in 2011 experienced financial loss. As well, with check fraud remaining the prevalent method in which organizations experienced payment fraud, only 14 percent suffered a financial loss from such fraud.

Many organizations have stepped up its efforts in thwarting payment fraud. However, fraudsters in turn are becoming more aggressive in pursuing higher-value payoffs and convenient opportunities.

Click here to access to the 2012 AFP Payments Fraud and Control Survey Introduction and Key Findings