New research report by Creednz in collaboration with the Ponemon Institute notes rising rates of payment transaction fraud – and slower response rates to address it before it occurs
MIAMI and TEL AVIV – Payment fraud amounting to billions of dollars remains among the top risks to companies globally, with more than two-thirds of U.S. corporate finance departments reporting some sort of breach that has cost them money in the past 12 months.
Creednz, a platform that safeguards corporate finance teams from payment scams to prevent financial loss, launched their inaugural report on financial security trends. The report, which polled more than 650 industry professionals, found that 88% said their organizations had at least one payment transaction fraud in the past two years, while 76% of respondents say it took more than a month to more than a year to discover and remediate these incidents.
Beyond losing capital, the number one negative consequence following a fraud incident is reputational damage with business partners and consumers, with 60% of survey respondents reporting a hit to their reputation and brand. This is followed by non-compliance with regulations (51% of respondents) and loss of shareholders’ confidence (46% of respondents).
“With data breaches and ransom demands making headlines, and an increasing sophistication of fraudsters, companies have lost billions of dollars to fraudsters, which has largely gone unnoticed,” said Creednz Co-founder and CEO Johnny Deutsch. “Creednz was built from the ground up to give finance teams the tools to fight back and protect against payment fraud and safeguarding corporate finances.”
Other highlights include:
- By 2028, the value of business transactions worldwide is expected to increase to $200 trillion;
- 68% of financial professionals did not believe their banks would verify and stop suspicious transactions;
- 76% of financial professionals say they are concerned about the potential of fraud when making payments to regions outside of the U.S. and Canada.
Separately, Creednz is pleased to announce that it has finalized a $7 million fundraising round led by Blumberg Capital with participation from Elron Ventures and Moneta VC. The funds will be used for growing the team, continued product development and executing in the marketplace.
About the report:
“Explore illuminating insights from interviews with 659 finance executives featured in the 2023 Ponemon Institute Report. In a groundbreaking market survey conducted in March 2023, Creednz partnered with the renowned Ponemon Institute, helmed by Dr. Larry Ponemon, a former senior partner at PWC and founder of the firm’s global compliance risk-management group.
This pioneering research marks a significant milestone, capturing responses from 659 finance executives representing 18 diverse industries across the United States. These executives hail from corporations with average annual revenues in the $400 million range and maintain supply chains averaging 2,800 suppliers.
Traditionally, industry statistics have relied upon aggregate data, such as the FBI Internet Crime Reports (The IC3), which reported a staggering $50 billion in losses from scams like Business Email Compromise between 2013 and 2022. However, these figures lacked granularity, leaving questions unanswered regarding the affected companies and the prevalence of such losses.
Our research revolutionizes this landscape by providing valuable insights for companies to recalibrate their risk focus. By shedding light on the accountability aspects of payment scams, we bridge the gap between finance and cybersecurity departments, revealing how these financial challenges squarely fall within the purview of corporate finance.”
About Creednz
Creednz empowers finance departments with cutting-edge controls designed to combat the ever-evolving landscape of threats that pose risks of financial loss. While most companies focus on data, Creednz focuses on integrating directly with finance departments to protect their money. Learn more at www.creednz.com.
