AFP Payments Fraud and Control Survey Reveals Response to Recent Retail Breaches

Companies See Big Impact from Increased Card Security Investment

Apr 03, 2014, 07:30 ET from Association for Financial Professionals

WASHINGTON, April 3, 2014 /PRNewswire/ -- Despite a slight decrease in corporate payments fraud and a heightened interest in security risks, 2013 saw an increase in fraud specific to credit and debit cards as criminals and their schemes became more sophisticated, according to the 2014 AFP Payments Fraud and Control Survey released today by the Association for Financial Professionals (AFP). 

"Criminals will try to stay a step ahead," said Jim Kaitz, AFP's president and CEO.  "But with potential liability increasing for merchants, companies are taking a hard look at where their own vulnerabilities lie.  This is especially important for big companies with complex systems, which are frequent targets for fraud."

Now in its 10th year, the survey, sponsored by J.P. Morgan, found that even as check fraud has declined, companies are now preparing for the shift in credit/debit card liability from issuers to merchants. Among survey respondents, 22 percent that accept credit/debit cards from their custom­ers anticipate a significant impact from their investment in card acceptance fraud prevention methods and half expect some impact.

In the wake of recent security breaches, 63 percent of organizations have either ad­opted additional security measures or are planning to do so in the near future, with measures ranging from secure signature stamps, electronic signatures, payment data stored with third-party vendors and increased layers of security.


  • Sixty percent of organizations were exposed to actual or attempted payments fraud in 2013, similar to 61 percent in 2012, down from 68 percent in 2011.
  • Changes in payments fraud experienced in 2013 compared to 2012:
    • 27 percent - increase
    • 16 percent - decrease
    • 57 percent - no change.
  • Payments formats targeted by fraudsters:
    • 82 percent - Checks
    • 43 percent - Credit/debit cards (corporate and consumer), up from 29 percent in 2012
    • 22 percent – ACH debits, down from 27 percent in 2012
    • 14 percent – wire transfers, up from 11 percent in 2012 
    • 9 percent – ACH credits, up from 8 percent in 2012
  • Seventy percent of companies exposed to actual or attempted fraud in 2013 experienced no financial loss as a result.
  • Eighty percent of companies that experienced actual or attempted payments fraud found it originated outside the organization.

"The fraud survey serves as such an important tool in understanding the potential risks within the payments industry and should not be underestimated," said Nancy McDonnell, J.P. Morgan Commercial Banking Sales Executive.  "Knowledge of current payments fraud practices and preventive measures helps companies implement the products and processes they need to protect their corporate assets."


 In January 2014, AFP surveyed over 5,600 corporate practitioner members with the job title cash manager, analyst, and director, resulting in 449 responses.  This is the 10th year that AFP has conducted this survey. Download the survey results: 

Headquartered outside Washington, D.C., the Association for Financial Professionals (AFP) is the professional society that represents finance executives globally. AFP established and administers the Certified Treasury Professional and Certified Corporate Financial Planning & Analysis Professional credentials, which set standards of excellence in finance. The quarterly AFP Corporate Cash Indicators serve as a bellwether of economic growth. The AFP Annual Conference is the largest networking event for corporate finance professionals in the world.

AFP, Association for Financial Professionals, Certified Treasury Professional, and Certified Corporate Financial Planning & Analysis Professional are registered trademarks of the Association for Financial Professionals.© 2014 Association for Financial Professionals, Inc. All Rights Reserved.

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SOURCE Association for Financial Professionals