We were proud to take part of the New York Cash Exchange (NYCE) 2020 virtual conference in June and co-host a session on “Why Companies are Losing the War Against Corporate Payment Fraud and How We Can Regain the Upper Hand”.
At the session we heard from Mindy Fiegle from Cineworld, the second largest cinema chain in the world, who presented important insights based on Cineworld’s journey to reducing the risk of payments fraud.
Such insights are of critical relevance these days due to the fact that companies of all sizes and shapes, across every industry and geography, are losing the war against payment fraud.
This fact is substantiated by some pretty stark numbers. For example, $26 billion were lost to business email compromise fraud in the last three years according to the FBI.
Moreover, the outbreak of the coronavirus has further hindered organizations’ ability to fight payments related cybercrime, as it has made approving, interacting with, and making payments to suppliers much more challenging due to relaxed controls, disrupted supply chains, and more.
The Cineworld journey to robust payments protection
Cineworld, as with many companies worldwide, had been receiving fraudulent payment-related emails for years. And, while some of those emails were clearly fake, some – unfortunately – could be very convincing.
Add to that the complexity from engaging with many international vendors, where this engagement is primarily executed through emails, across multiple time zones, and often with language barriers.
It was clear to the team at Cineworld that its manual, email-based process of validating both the actual supplier and the payment itself could no longer be relied upon.
As Cineworld was bringing in more and more international suppliers they realized that they needed an automated solution to augment its existing manual processes to avoid human error and vulnerabilities, which are often exploited by cyberfraudsters.
Cineworld engaged with nsKnox for its automated solution that is driven by a multi-layered approach.
The implementation was seamless, and the new automated process was immediately applied to every geography and supplier profile.
The multi-layered approach to payments protection
The multi-layered approach to payment protection that was recommended by nsKnox and adopted by Cineworld constitutes an optimized and robust framework that is based on multiple layers of payments protection.
Namely:
- Infrastructure, which requires securing end points, access and communication, and email systems.
- People and processes, which requires identifying key processes, redefining the new baseline, and publishing findings via education and training.
- Automation, which requires adopting technology to automate manual processes and reduce human error, particularly and specifically with regards to bank account validation and payments monitoring and control
To learn more about protecting payments with the multi-layered approach to payments protection we invite you to access the session recording by filling out this form.
