What technology can help prevent business fraud?

Currently, there is a wide variety of online or banking payment methods that companies implement in order to be able to invoice their customers, the application of which must first be adjusted to a series of criteria and circumstances. Let’s see what are the different payment methods for companies:

• Cash payment: the simplest and the most used by companies. We should only be concerned about the possibility of dealing with counterfeit banknotes, as well as the measure of the bill against tax fraud, which limits payments between companies to 2,500 euros per good or service provided.

• Check or promissory note: this is a deferred payment in which the buyer issues a payment document. A fairly safe method since it does not make it possible to allege the absence of delivery of the goods or the service purchased. It is very important to specify that once the check or the promissory note is issued, the bank account from which the transaction will be paid cannot be changed.

• Bank transfer: through this payment system, the customer gives an order to the bank to pay the amount of the purchase. A very comfortable invoicing system for the supplier, in which the biggest drawback that can be found is the customer’s willingness to invoice.

• Direct debit: in this case, it is the supplier who tells his bank to debit the amount of the sale from the customer’s account. A comfortable system for the customer, since he only has to validate it when the agreed amount expires.

• Bank confirmation: through this system, the customer orders the bank to issue payment documents to the supplier, which represents a risk for the same since the customer can revoke it at any time if the confirmation has not been carried out. The bank is obliged to advance the amount in exchange for a commission and interest. The bank only grants these confirmation lines to companies with sufficient guarantees

• Documentary credits: consists of the use of two banks to ensure maximum legal security for a sale and purchase transaction. In this payment method, each of the parties provides the corresponding bank with the documentation to be validated before making the payment or delivering the goods. It is recommended for large amount operations because it brings a series of costs that must be taken into account.

• Cash on delivery: Provides a great sense of security for customers, who can only pay when they have the product in hand. However, the final cost increases between 3% and 5% due to management fees.

• PayPal: one of the most secure payment methods. PayPal is a virtual platform that only requires an email address and password from both parties. In the event that the customer does not have a PayPal account, he can pay by card and deposit his money in the provider’s PayPal account. It should be mentioned that this online service, although it does not charge a monthly fee, reduces a percentage of each purchase.

About cybersecurity and treasury fraud

Due to the constant evolution of technology, a business may experience fraud in its cash flow operations due to the activity of online scammers, who are continually innovating in their methods to get the most money. money possible. That is why companies must have strict cash flow security standards, established by policies and procedures that keep the business running smoothly and prevent its violation by these crooks. At the same time, these companies must integrate a series of cybersecurity solutions that protect them from hacking attacks, such as:

• Limitation of access to information

• Use of a secure and dynamic password system

• Protection of email accounts

• Create backups and perform secure deletions

• Access and purchases via secure web pages

• Data storage in the cloud

Protect your company’s cash flow with Kyriba management tools

Because of the danger that the actions of these crooks represent for the operation of the business, it is recommended that they have management software that allows them to provide the necessary security and control to their cash flow, to through payment confirmation and centralization of banking activities. to instantly avoid suspected fraudulent payments.

Business management tools such as those offered by Kyriba make it possible to prevent fraud attempts in companies, through the standardization of payment approval processes, control of compliance with treasury policies and recommended practices, centralization visibility of banking activities and signatories, among others. Implementing the business solutions that Kyriba provides to its customers strengthens the security of the business against fraud, protecting payment workflows and treasury processes, and ensuring their control and enforcement.

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