To assist organizations in understanding and benchmarking their own processes, the Association of Certified Fraud Examiners (ACFE) and Thomson Reuters collaborated on a report. This report aims to explore the risks and controls associated with business-to-business transactions and relationships. The findings are compiled in: “Combatting Business-To-Business Fraud: Benchmarking Report”.
The report is intended to provide valuable insights to organizations and anti-fraud professionals worldwide, helping them develop and enhance programs to protect against fraud risks arising from customer and vendor relationships with other businesses.
The report emphasizes the importance of recognizing and managing fraud risks in business-to-business relationships and highlights the need for faster and more accurate due diligence, particularly considering the increasing use of artificial intelligence and the potential for bad actors to create synthetic businesses. The report is based on data gathered from a survey of ACFE members globally, primarily from the internal audit and compliance/ethics functions, with representation from banking/financial services and manufacturing industries.
The key findings of the survey are that the top fraud-related risks identified by respondents are synthetic identities/businesses as well as potential fines or regulatory actions and that onboarding new vendors and customers is considered moderately or extremely challenging by a majority of organizations.
To tackle these challenges and address fraud concerns tax ID numbers and ownership information are the most commonly collected information during the onboarding process and over half of the surveyed organizations plan to incorporate more artificial intelligence/machine learning in their Know Your Business (KYB) and Know Your Vendor (KYV) due diligence processes.
Access to the report is available to ACFE members, while non-members can request access through the following link.
