August 29, 2016

Is Your Cash Outflow Safe From Harm?

by Payment Fraud Prevention, Global Bank Connectivity, Payments and Financing

Company loses tens of thousands to fraud. Stories like this have recently hit the headlines as cyber scams continue to spread around the globe. In the so-called Business Email Compromise scams, cyber criminals send carefully drafted bogus emails pretending to be a company executive and convince finance and accounting employees to initiate payments.

We interviewed our expert for some practical tips for ensuring that your cash outflows are safe from fraud.

“These headlines should, at the latest, prompt companies to ask how secure and up to date their own cash outflows actually are. For instance, emails that can be hacked so easily shouldn’t belong to the payment process at all. A modern payment processing solution that supports safe practices gives the backbone to secure cash management and helps companies to avoid fraud losses,” says Markus Makkonen, Product Manager, OpusCapita.

Double-checked is double-sure

In mitigating the risks of both external and also internal fraud, Makkonen says automation of payment flows, harmonization of processes and establishing strong user rights management can go a long way.

“Standardized and automatized processes not only increase the efficiency but also the security of payments. For instance, replacing the manual loading of payment data files with automated interfaces eliminates many opportunities for misuse.”

Manual payments should only be exceptions in the payment process, filtered carefully. And in cases where a request for an ad hoc payment needs to be made, there should, for instance, be pre-approved payment templates created in the payment processing software for the end users.

Approval chains are another important building block in security. Best practices include, for example, two-step approval of payments and policies that prevent users from approving payments they have initiated themselves, for example.

“OpusCapita has placed great emphasis on developing the administration of user rights in its software. With centralized monitoring, it is easy to spot and eliminate risky combinations of work tasks and individually assign rights to users according to their role. With OpusCapita’s advanced user management (AUM) it is also possible to enforce policies for actions that require a pre-assigned inspector’s approval, for instance when new user rights are assigned to someone.”

Securely from the cloud

Issues related to data transfer are often among the main security concerns that companies have. Markus Makkonen states that the SaaS delivery model OpusCapita uses for its payment processing software offers many benefits in terms of security.

“We as the service provider take care of maintaining and upgrading the technology, which ensures that the security features are always up-to-date. Our cloud platform is regularly audited according to the strictest data security requirements.”

OpusCapita’s cloud-based cash management solution, recently awarded the SWIFT Certified Application label, has almost 100 direct bank connections in the Nordics and is integrated securely to the SWIFT network of 10 000 financial institutions globally.

“It’s a true single-point-of-entry for all bank connectivity, which brings transparency and control to payments, building end-to-end security,” says Makkonen.

Read more blog posts about Payment Fraud Prevention