Last year, 76 percent of U.S. organizations experienced attempted or actual payments fraud, according to a survey from the Association for Financial Professionals. The losses can be substantial; an October 2025 report from TransUnion found that businesses globally estimate losing an average of 7.7 percent of annual revenue to fraud, or roughly $534 billion across surveyed businesses, with U.S. companies reporting higher losses on average.
As AI-driven fraud tactics become more sophisticated and payment environments become more digital and interconnected, the consequences of leaving payment security gaps unaddressed are only growing. For companies managing B2B payments and working capital programs—areas where my own company specializes—taking a proactive approach to fraud prevention is more vital than ever.
Among the threats and vulnerabilities putting organizations at risk:
- Increasingly advanced fraud schemes, including impersonation attempts, unauthorized banking changes and manipulation of trusted business communications
- Limited visibility across payment and working capital workflows that makes anomalies, exceptions and risks harder to identify before funds move
- Fragmented supplier and payment data across procurement, treasury and accounts payable systems, creating gaps in verification and oversight
- Manual processes and approval fatigue driven by growing transaction volumes, distributed teams and pressure to accelerate payments
- Reliance on periodic reviews instead of ongoing monitoring, resulting in blind spots as supplier information and payment activity change over time
Over the years, I’ve observed that payment security is all too often treated as a reactive exercise rather than a proactive investment, and it’s easy to understand why.
The tradeoff between speed and security is a tale as old as time, and stronger safeguards generally require greater upfront investment. But as payment security technology and capabilities continue to evolve, the short-term tradeoffs of investing in stronger fraud prevention are becoming far less pronounced. Further, the reality is that the cost of responding to the financial disruption and operational fallout that results from payment fraud far exceeds the cost of prevention.
As Benjamin Franklin famously said, “An ounce of prevention is worth a pound of cure.”
So then, in present day (rather than 1735), what does payment fraud prevention actually look like? When assessing the security of your own payment programs, along with those of prospective payment and verification partners, these are the capabilities that matter most:
- Transparency across the payment lifecycle: Organizations should have clear visibility into transaction status, approvals, exceptions and changes at every stage of the payment process. Transparency reduces uncertainty, strengthens accountability and makes it easier to identify potential issues before they create operational disruption.
- Continuous verification, not one-time checks: Occasional, point-in-time reviews are becoming less effective in payment environments where supplier data and transaction activity can move faster than traditional review cycles. Ongoing real-time monitoring helps organizations detect emerging anomalies and identify risks before they escalate.
- Modern identity verification practices and workflows: AI-driven fraud detection that incorporates document verification, biometrics and fraud signal monitoring helps strengthen trust between participants across the payment ecosystem. Executed effectively, the identity verification process can often take as little as 30 seconds per user.
- Audit and compliance readiness: Technology may be advancing rapidly, but the need for receipts, record-keeping and regulatory compliance remains ever constant. Accessible paper trails and audit records are non-negotiable, with clear documentation of approvals, verification history and transaction records.
- Human oversight and accountability: If a payment issue arises (and spoiler: it will), who steps in and what kind of support is available? Technology goes a long way in strengthening payment security, but it must support—not replace—human judgment. Clear ownership, escalation paths and decision-making authority remain critical across payment operations.
Now, bear in mind, I say the following as someone with a lifelong passion for technology, a bullish perspective on innovation and decades of a fulfilling career in this space: For any fraud prevention strategy, and any technology tool more broadly, its most important asset is…the humans behind it. The most proactive and effective step you can take in fighting payments fraud? Find a payments services partner whose leadership and team you trust, and whose values are aligned with your own.
