In today’s digital age, financial security is a top priority for businesses. ERP systems, such as SAP, Oracle, Priority, and Tafnit, have revolutionized the management of financial processes and supplier relationships. However, when suppliers request changes to supplier bank accounts , relying solely on supplier bank verification can expose your organization to fraud. Fraudsters exploit weaknesses in traditional verification processes, leading to significant financial losses. This article examines these risks and presents Detelix’s proactive solutions to protect your financial operations.
ERP systems and fraud risks
Although ERP systems offer advanced automation, they are not immune to fraud. Cybercriminals exploit system vulnerabilities, weak internal controls, and human error to carry out fraudulent activities. Many businesses rely on bank verification for suppliers , but this step alone does not provide complete protection and can expose the organization to significant risks.
Why is bank verification for suppliers not enough ?
Scammers impersonating legitimate vendors
Fraudsters can open bank accounts under the names of existing suppliers. The bank approves the account but does not verify the true intentions of the holder. For example, in 2018, an international media company lost $1.2 million after transferring funds to a fictitious account that the bank verified during the supplier bank verification process .
Manipulation of the verification process
Sophisticated criminals use social engineering to intercept communications between the business and the bank or falsify information. This allows them to make fraudulent accounts appear legitimate, bypassing ERP and bank security mechanisms in the process of changing supplier bank accounts .
Poor checks when opening new accounts
In many cases, banks do not conduct sufficient due diligence when opening accounts, especially for online or international banking platforms. Fraudsters exploit this to their detriment, routing payments to accounts that do not belong to real suppliers, as part of a process of supplier bank account spoofing .
Challenges with new banking technologies
Online banks and remote account opening services offer great convenience, but they often lack advanced verification processes. This exposes businesses to greater risks than traditional banks when verifying bank accounts with suppliers .
How Datalix strengthens fraud protection
Datalix offers advanced solutions to protect businesses from fraud. The system uses intelligent algorithms, third-party verification services and multi-layered security processes, which provide broad protection in the processes of changing supplier bank accounts . Datalix performs in-depth verification of supplier identity and account details, and promises to detect fraud attempts even before payments are made. The solutions easily integrate with existing ERP systems, improving security and reducing risk without disrupting business operations.
Summary
Relying on vendor bank verification alone is not sufficient to protect against fraud related to vendor bank account changes . Adopting proactive solutions, such as those offered by Datalix, allows businesses to ensure financial security and prevent unnecessary losses.