Enterprise Payment Software | 2019Enterprise …...Fraud and Control Survey Stats •Learn how to...

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Enterprise Payment Software| 2019Enterprise Payment Software | 2019


Any forward-looking statements made in this presentation and any subsequent

Q&A period are subject to risks and uncertainties. The information provided is

not a commitment, promise or legal obligation to deliver any products, features

or functionality. The development, release and timing of any features or

functionality described for our products remains at Nvoicepay’s discretion and

should not be relied upon in making a purchasing decision. The company’s

actual results may differ materially from those currently anticipated due to a

number of factors, including the competitive nature of the marketplace, the

condition of the worldwide economy and other factors detailed in the company's

most recent form 10K and subsequent 10Qs or other documents filed with the

Securities and Exchange Commission.


Josh CyphersVP Product & Strategy

Industry Thought Leaders

Mark BrousseauBrousseau & Associates


Thought Leadership Session

OBJECTIVES

• Learn about the 2019 AFP

Fraud and Control Survey Stats

• Learn how to prevent modern

payment fraud attacks

• Learn what technology you can

leverage to reduce risks

AGENDA

• Tech adoption

• 2019 Fraud and Control Report

• Fraud Story

• Leveraging tech to mitigate risk


Enterprise Experts – 500+ customers and growing

Industry Annual Revenue Employees

Hospitality $11.7B 77K

Construction $1.1B 1200+

Automotive $3B 2K+

Transportation $2.16B 2M+

Manufacturing $798.1M 1400+

Technology $170.8M 800+


SOURCE: 2016 Ardent Partners, Eyes on the Prize.

Technology Adoption - AP’s Top Priorities

Better link P2P process and systems

Improve collaboration with procurement

Improve collaboration with suppliers

Improve invoice & payment data visibility

Improve reporting & analytics

Reduce processing costs

Eyes on the prize© Ardent Partners 2019


AP’s Top Uses of Data and Financial Intelligence© Ardent Partners 2019

AP Is the Center of Knowledge and Strategy That Guides Company Innovation

Forecasting, budgeting,& planning

Cash flow analysis

Fraud and compliance

management

Invoice exception handling

Improving collaboration

between finance & procurement

Enhancing supplier

management (communications, negotiations, etc.)

64%61% 58% 55%

48%

30%


Machine Learning

Robotic Process Automation/

Prefabrication

Connected Locations

Artificial Intelligence/

Predictive Analytics

Virtual and Augmented Reality

“7 Major Construction Tech Innovations to Watch in 2018”

connect.bim360.autodesk.com

Back Office Automation/

Electronic Payments

Digital Transformation


Historical Trend of Fraud for Payment Methods

• Checks are the payment method most subject to fraud, but instances being reported are on the decline

• Wire fraud continues to be at elevated levels, Business Email Compromise (BEC) a likely cause of attacks

• Fraud activity with cards on the decline

• ACH debit fraud has increased to record levels and continues its upward trend

• A steady increase in ACH credit fraud since 2012


Percent of organizations that experienced

attempted and/or actual payments fraud

Percent of organizations that experienced attempted and/or

actual payments fraud in 2017

*Source: 2019 AFP Payments Fraud and Survey Report

Payment Fraud Trends



Payment Fraud Costs


• 92% report that it cost their companies up to half a percent of revenue; 8% report 0.51% to 1.5%



Payment Fraud Stats


• 54% of respondents: fraud via business email compromise (BEC)

• 67% of organizations reported treasury staff discovered the fraud



Percent of Organizations that Experienced Attempted and/or Actual Payments Fraud, 2008-2018


Checks

Wire Transfers

ACH Debits

Corporate/Commercial Credit Cards

ACH Credits

Payment methods that were targets of attempted and/or actual payments fraud in 2018



Fraud Stories


Fooling Google & Facebook


Best Practices for Mitigating Risk Through Technology


1. Secure Vendor Data Management

Gathering banking data

Verifying banking information

Storing banking info

Continuous update


Ex: Solution Provider Verification

Multi-Layered Validation

Validation Criteria

• Does all information match the customers supplier record (name, address, TIN, etc.)

• Does void check name and address match the customer’s supplier record

Person 1 Enters new supplier payment data

Supplier is added to the Nvoicepay Supplier Network

Person 2 Verifies new

entry

Person 3 Verifies supplier data before first

payment is processed


2. Reconciliation

What to look for: Reporting:

Finding the Right Payment Automation Solution

Compatibility

Cross platformFlexibility

Multiple data streams

Visibility


3. SOC Compliance

• SOC 1 Type 2

• SOC 2 Type 2

• Vulnerability Testing & Resolution

• Annual Process and Workflow Review


4. Continuous Staff Security Training


5. Architect Your Solution or Processes with Security in Mind


• Providing Liquidity

• Cash Management

• Statement Creation

Strengths

• Fraud Prevention

• Charging for simple

services

• Exception handling

• Supplier Support

Weaknesses

Massive Gaps in Current Bank Process


Automation can lead to new complexities

Remember Best Practices

1. Secure vendor data management

2. SOC Compliance

3. Continuous Staff Training

4. Architect with Security in Mind

AP is coming up the tech curve

Looking Forward


Q&A


Thank You!

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