Deutsche Bank’s latest paper explores the importance of close collaboration
between corporates, banks and technology providers to build a collaborative and
robust defence against payment fraud.

Today, Deutsche Bank launches its latest whitepaper – “A corporate’s guide to
payment fraud prevention” – which highlights the increasing need for corporates,
banks and technology providers to work hand-in-hand to determine and address
areas of vulnerability to payment fraud and work as a team to create a cohesive
defence against these risks.

Payment fraud has emerged as one of the biggest challenges facing corporate
treasurers in recent years, with criminals targeting corporations of all sizes and
across all industries using increasingly sophisticated technologies. Cases are so
prevalent that the Association for Financial Professionals (AFP) recently found
that 71% of organisations responding to its annual survey had fallen victim to
payment fraud in 2021. In light of these developments, the payment industry faces
a constant battle to keep pace with new fraud methods, such as fake-invoice
scams, man-in-the-middle attacks and business-email compromise.

“This paper comes at a critical time,” says Stefan Fruschki, Head of Transaction
Surveillance & Cross-Product Governance, Deutsche Bank. “While anti-fraud
strategies for corporates are steadily improving, so are the strategies being
employed by fraudsters to circumvent them. To counter this, each actor in a
payment chain, whether it is the corporate, bank or technology provider, brings a
unique set of skills and expertise to the table – and having these ideas and
approaches exist in isolation does not produce the vital synergies.”

Fighting fraud within each of these silos is only so effective, the paper concludes.
By working together, the industry can deliver value greater than the sum of its
parts, creating an ecosystem that is more efficient, streamlined and, ultimately,
more effective at preventing fraud.

With this in mind, the paper explores the role that each of these stakeholders can
play in minimising the risks, taking in views and examples from industry experts in
each case.

“The dangers of fraud were brought into sharp focus during the Covid-19
pandemic, which saw many of our employees, and those of our counterparties,
move to a working-from-home environment,” says Gerd Berghold, Head of

Treasury Operations and Digital Treasury, Deutsche Bahn, and contributor to the
paper. “This left communication channels more exposed and, as a result, more
susceptible to fraud attacks.”

To shield against these exposures, the paper recommends corporates focus on 1)
promoting awareness of the common risks and techniques among their staff, 2)
auditing their processes to ensure consistency and security, 3) conducting a
tailored organisational risk assessment outlining a clear segregation of duties
across branches, legal entities and jurisdictions, and 4) implementing innovative
technology solutions to help catch any attempts as early as possible.

“With fraud attempts on the rise, and criminals increasingly targeting people rather
than technology, this kind of education is key to shoring up defences and
minimising risks for corporates,” concludes Stefan Fruschki.