Five Ways to Catch Business Payment Fraud
A payment request can look completely legitimate and still be fraudulent. An email may appear to come from a trusted supplier, a familiar executive, or someone your team has worked with for years.
For established businesses, preventing payment fraud takes more than spotting suspicious messages; it also means strengthening the everyday processes employees use to approve invoices, update payment details, and send money, especially when busy schedules make it tempting to move quickly.
Before the holiday rush, consider these five ways to help your team recognize potential fraud and keep payments moving safely.
1. Verify Changes to Vendor Payment Details
A message claiming that a supplier has changed banks or needs payments sent to a new account may seem routine, but it can also be an attempt to redirect your money Before updating a vendor’s payment information, call a known contact using a phone number already on file—not the number provided in the change request. Even when an email appears to come from a familiar sender, independently confirming the change helps ensure your next payment reaches the right destination.
2. Treat Urgent Payment Requests With Extra Care
Fraudsters often create a sense of urgency by impersonating a business owner, executive, or supplier and insisting that a payment be made immediately. Requests to bypass normal approval steps deserve particular attention, especially when the sender discourages questions or asks employees to keep the transaction confidential.
Make sure your team knows that pausing to verify an unusual request is part of protecting the business, not an obstacle to getting work done. Building that expectation into your payment process can help employees feel comfortable asking questions, even when a request appears to come from leadership.
3. Separate Payment Preparation From Approval
When possible, avoid giving one person responsibility for preparing, approving, and sending a large or unusual payment, since a second review creates another opportunity to catch errors or potential fraud.
Set clear approval limits, identify who can authorize transactions, and establish when an additional review is required, such as when a payment involves a new recipient or falls outside normal business patterns. Defining these expectations in advance gives employees a process to follow rather than leaving them to make judgment calls under pressure.
4. Review Account Activity and User Access
Regular reviews of business account activity can help you spot unfamiliar transactions and investigate them promptly, while periodic access reviews help ensure that only the people who need your banking and payment systems can use them.
Pay particular attention when employees leave the business or change roles, removing access that is no longer needed and using the security features available through your financial institution. If you notice suspected unauthorized activity, contact your financial institution immediately using a verified phone number.
5. Have a Plan for When Something Goes Wrong
Employees should know whom to contact if they click a suspicious link, share account information, or approve a payment that later raises concerns, so they can report a potential problem without delay.
If you suspect a fraudulent payment, contact your financial institution immediately and ask whether the transaction can be stopped or recalled. Preserve relevant emails, payment details, and other records, and report the incident to the appropriate authorities. Although recovery is not guaranteed, acting quickly may improve the chances of limiting losses.
A Small Check Can Prevent a Big Problem
Fraud prevention does not have to mean adding complicated steps to every transaction; clear approval rules, independent verification, and regular account reviews can make everyday payments safer while giving employees greater confidence in the process.
CWCU business members can learn more about Business Online and Mobile Banking and available account management features. If you notice suspicious activity involving your CWCU account, contact CWCU through a verified channel right away.
Taking a few extra minutes to verify a payment today could save your business significant time, money, and disruption later.
The information provided here is for informational purposes only and does not constitute financial advice. Consult with a qualified financial advisor before making any financial decisions. Federally insured by NCUA. Membership eligibility required. Business loans/lines of credit subject to credit approval. Rates/terms/fees may apply; ask for details.