The Internet has made it easier for individuals to rapidly share and receive information about a wide range of topics. In addition to allowing users to perform job searches and connect to people remotely, the Web has made it possible to conduct online banking and other accounts payable transactions. As with all interactions between individuals, however, there are risks involved with entrusting an unfamiliar source with personal information.
According to the Shreveport Times, an instance of online fraud was perpetrated against a victim who was allegedly turned down for a loan that she applied for – by a company other than the one she originally utilized. The source reported that the fraudulent website, pinevalleyfinancial.com, that contacted the woman – whose name was not revealed for the sake of privacy – maintains the appearance of a legitimate operation, but is the reason why at least one individual has lost hundreds of dollars.
According to the source, the victim was told by Pine Valley Financial that although she did not qualify for the original loan, she could instead wire $800 to the firm's account as a collateral security payment. Unfortunately, after waiting more than two weeks before alerting the local authorities, the victim never saw the promised money.
The Guardian reported that online fraud has begun to cost the global economy billions in lost funds. Although reinforced security efforts are being enacted worldwide, hackers are developing new methods of accounts payable fraud faster than precautionary measures can be built to support financial institutions. The source noted, however, that if better online security awareness is taught to children earlier on, the threat of cyberattacks can be mitigated.
One way that organizations can prepare themselves against these attacks is by deploying AP audit solutions. These make it easier for financial institutions to recognize the threat of fraud before it happens.