Dangers of changing bank account details in ERP systems

ERP (Enterprise Resource Planning) systems such as Priority , Oracle , Tafnit and SAP are key tools in managing organizations’ financial information, automating processes and improving operational efficiency. However, despite their advanced capabilities, these systems are not immune to fraud, especially when it comes to changing bank account details.

Many organizations blindly trust their ERP systems, thinking that the built-in security of these systems is enough to prevent fraud. The truth is, this is a dangerous approach, leading to complacency and unpreparedness for the threats posed by criminals, both inside and outside the organization.

This is where Datalix’s ERP Fraud Detection System comes in , designed to address exactly these challenges. It is not just an ERP control tool, but an intelligent detection and alert system that enables organizations to protect themselves from serious financial risks.

How fraud occurs through changes to bank account details

ERP systems, despite their advanced nature, remain vulnerable to fraud stemming from changes to bank account details. Control gaps, weak verification processes, and human error provide fertile ground for exploitation by criminals.

Examples:

  • Business Email Compromise (BEC) incident: In 2020, criminals managed to change a supplier’s bank details in the ERP system of a large American company. The change was not verified, and the company lost over $3 million.
  • Internal fraud: A UK finance manager used internal access to an ERP system to change supplier bank account details and divert payments to his own account. The result: a loss of £500,000.

A 2021 study by the Association of Certified Fraud Examiners (ACFE) found that financial fraud is among the biggest threats to organizations, with bank account changes being one of the most common routes. This data is also consistent with findings published by PwC in the Global Economic Survey, which showed an increase in the use of sophisticated technological attacks to exploit ERP systems.

The advantage of an ERP fraud detection system:

The Datalix system performs a dedicated verification process with the supplier, examines the documents to verify their authenticity, cross-checks the bank account with databases, and verifies in an orderly process that the supplier is the one requesting the change in bank details, and not the one being uploaded. In addition, the system identifies unusual patterns in real time, sends immediate alerts, and even stops suspicious actions, which prevents such cases from recurring. The system integrates into the ERP system’s verification process and prevents harm to both the company and the supplier itself.

Why ERP systems don’t provide sufficient protection

While ERP systems are powerful financial management tools, they are not designed to handle all types of fraud. The vulnerability stems from two main reasons:

  1. Inadequate implementation and controls:Many organizations assume that an ERP system is “secure by default,” and therefore ignore the need for process validation and attention to detail. While the control system and control reports provide a basic solution, an ERP fraud detection system upgrades protection with real-time detection and alerting, process integration, data analytics, and machine learning.
  2. Insider threats:Employees with access to sensitive financial information can exploit the system for their own personal gain.

Another study published by SAP in 2023 highlights the importance of effective master data management to prevent financial fraud. The study recommends controlled processes and intelligent automation to identify anomalies in sensitive information, especially bank account details.

How an ERP fraud detection system solves the problem:

Datalix focuses on the real risk factors: identifying and verifying suppliers, identifying anomalies, monitoring changes in real time against a broad information cross-checking system within and outside the organization, and integrating smart alert mechanisms that respond immediately to threats.

Key Insight: ERP Fraud Detection System as a Complementary Solution

ERP systems cannot be an organization’s only line of defense against fraud. As the examples above show, vulnerabilities stem not only from technological weaknesses but also from gaps in internal processes.

Unlike traditional ERP systems, Detelix’s ERP fraud detection system does not focus solely on control, but rather identifies and alerts on abnormal activity. The system operates in real time, integrates advanced process and analytics, and provides organizations with peace of mind in an era where fraud is more sophisticated than ever.

Summary

The risks associated with changing bank account details in ERP systems such as Priority, Oracle, Tafnit and SAP are real and significant. The examples provided highlight the need for complementary systems such as the Detelix ERP Fraud Detection System , which enable organizations to identify and prevent fraud in real time.

According to recent studies, using advanced fraud detection systems, such as Datalix, allows for significant risk reduction and improved organizational awareness of fraud prevention. The Datalix system is not just another tool in an organization’s control system, but the ultimate gatekeeper that provides smart, advanced, and effective protection.

Finance managers who work with an ERP fraud detection system indicate that in this way, they also protect their business partners and strengthen trust in them.

 

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Detelix

A protection system for real-time identification and notification of human errors, embezzlement and fraud by employees and external parties.