FinTech firms are tapping into automation and training to stay on top of the latest security developments, while keeping an eye on evolving trends in the payments space. Fraud, for instance, is an ongoing threat, with nearly three-fourths of U.S. financial institutions reporting growing losses attributed to online and mobile fraud.
To help deter fraud, AvidXchange Chief Information Security Officer and SVP of Technology Operations Christina Quaine told PYMNTS in an interview that “education with our customer base” is key – as is education for its employees.
Technology such as accounts payable (AP) automation also helps combat fraud by significantly reducing human touchpoints while also increasing visibility, control and security around digital payments. Quaine said the company’s systems, for instance, “are programmed to handle the payments.” The automation factor makes the process hands-off and makes it “less likely for especially internal fraud to occur, but also external,” per Quaine. The most effective approach to security, however, is a hybrid model utilizing technology alongside internal check-and-balance processes when handling sensitive information.
When it comes to training, Quaine said the company’s employees should be aware of callers who want to change their account numbers, and should be mindful of questioning the caller. If it smells fishy, she noted, it probably is. Often, those requests are conducted with a sense of urgency, and those tend to be fraudulent types. Authenticating the user is an important step in ensuring that the employees are speaking to the right person. That could mean asking for data that is on the purchase order, invoice or vendor master file – and not necessarily requesting the same data each time.
And, similar to banks that send emails to customers when they change their account numbers or passwords, technology can help inform a customer of changes made to an account. But Quaine noted that, more importantly, it can keep them aware of potential fraud. Overall, FinTechs like AvidXchange service many mid-market companies, and it is key to allow them to decide on the level of security. Multi-factor authentication can be enabled each time a user logs onto the company’s website, for instance, and the user has to check their phone to receive a code.
With the help of technology and training, FinTechs like AvidXchange are aiming to protect their customers (and themselves) from fraud as they keep tabs on the latest industry developments.