Now greater than ever, companies globally have develop into more and more inclined to monetary fraud. From the rising menace of AI-enabled fraud, resembling deepfake scams, these makes an attempt threaten the monetary safety and integrity of any enterprise, and when carried out, can result in detrimental monetary losses.
In actual fact, in accordance with Medius’ 2024 survey of U.S. finance professionals, 48% revealed they’ve been focused by deepfake fraud, and 42% have fallen for deepfake scams. Amid a rising push towards digitization, nevertheless, companies are more and more adopting and leveraging modern instruments like machine studying and generative AI to maintain tempo with fraudsters. But, amid this push towards digitization nonetheless lies a rising menace to companies on account of the outdated funds processing techniques many proceed to make use of. The principle perpetrator? The persistent use of conventional, outdated paper checks.
As reported in a 2025 survey by the Affiliation for Monetary Professionals, respondents citing using paper checks for funds surged to 91%, and an additional 63% reported that their organizations confronted test fraud in 2024. Counterfeit checks, cast signatures, test washing and test theft are simply a few of the frequent forms of fraud related to using paper checks. Within the age of digitization and the period of AI, why are companies nonetheless making themselves weak to a lot of these assaults, and the way have digital funds developed as a vital resolution right now?
Attending to the basis reason behind ongoing paper test use
As the normal, all-too acquainted type of cost, using paper checks nonetheless stays an ongoing follow right now. Regardless of their ache factors — from longer processing occasions, dangers of forgery, loss and theft, and better processing prices — an awesome 75% of organizations nonetheless use paper checks, in accordance with a 2024 report. Amongst a few of the high causes companies proceed to depend on conventional paper checks embody familiarity, universality throughout companies, and value issues surrounding different options.
As a decades-long follow, familiarity with conventional paper checks stays a vital motive why companies have but to make the transition to digital funds. Intersected with familiarity can be the universality of paper checks on a worldwide scale, whereas digital funds carry the danger of not being an accepted type of cost from companies who’ve but to evolve their very own cost techniques.
Digital cost techniques for companies
For each ache level related to using conventional paper funds, digital cost techniques supply a direct resolution in response. Digital cost techniques function a cheap resolution designed to collectively improve fraud detection and prevention, enhance buyer and vendor experiences, and improve total operations. Embedded inside digital cost techniques are superior safety protocols — together with encryption and multifactor authentication — vital for decreasing the danger of fraud for companies. Additional, the advantages of real-time transaction processing and enhanced monitoring and alert capabilities additionally allow sooner identification of potential fraud. A one-time funding in a complicated
digital cost processing system additionally implies that companies not have to depend on added prices from printing and mailing checks and might relaxation assured that their funds won’t be misplaced within the mail or probably stolen or cast within the course of.
With sooner transaction processing, digital funds imply a extra environment friendly funds course of for each clients and distributors in the long run. Whereas know-how may be additional enhanced and improved to satisfy the evolving wants of companies, relating to reliance on conventional paper checks, there may be
little that may be accomplished to thoroughly forestall fraud and theft from occurring. Companies that solely depend on using outdated paper checks restrict their potential to enhance operational effectivity and go away their clients and distributors at an elevated danger of being focused by fraudsters.
Establishing a strong accounts payable audit path can be made extra environment friendly by the adoption of a digital cost system. Whereas finance groups counting on handbook AP audit trails can face difficulties in monitoring handbook approvals or the danger of loss or destruction of paper paperwork, an automatic AP audit path allows companies to raised doc, monitor and retrieve cost data, to each guarantee compliance in addition to improve monetary reporting.
In an period of financial uncertainty, rising prices and the rising menace of fraud, companies are more and more on the lookout for new and modern strategies to scale up their operations. By evaluating the techniques they at present have in place and making adjustments to replace outdated and risk-driven processes, they’ll guarantee an working surroundings of safety, effectivity and ongoing innovation. An automatic digital cost system is only one technique to not solely deal with companies’ high challenges but in addition guarantee corporations are staying forward of the curve in a rising push towards digital transformation.
