What is vendor payment fraud and how to protect your SME?

In the dynamic business world, SMEs are the engine of the economy, but also an attractive target for fraud. Vendor payment fraud is a silent threat that can bleed your finances dry if you're not prepared. It is estimated that companies lose millions annually due to these types of scams. Do you know how to protect your business?

Common Types of Vendor Fraud

Identity Theft (Business Email Compromise - BEC)

Scammers impersonate a legitimate supplier (or even an executive from your own company) and request a change in bank details for future payments. The emails are usually very convincing.

Fake Invoices

You receive an invoice for services or products you never requested or received, hoping you'll pay it without proper verification.

CEO Fraud

A scammer impersonates the CEO or a senior executive and orders an urgent transfer to a fraudulent account, often under the guise of a secret acquisition or emergency.

How ValidaCuenta Protects Your SME

The key to combating fraud is verification. ValidaCuenta offers you a robust and simple tool to protect your payments:

Real-Time Ownership Verification

Before making any payment, ValidaCuenta confirms that the beneficiary's name matches that of the bank account. This is your first line of defense against impersonation.

Data Error Detection

Avoid transfers to non-existent or incorrect accounts. Our platform validates the format and existence of the account, reducing bounces and operating costs.

Audit and Traceability

Each validation is recorded, providing a clear history that helps you in audits and in resolving any disputes.

Additional Tips to Protect Yourself

Double Verification

Always verify any changes to bank details through a second channel (e.g. a phone call to a known number, not the one that appears in the suspicious email).

Staff Training

Educate your team about the risks and warning signs of fraud.

Clear Policies

Establish strict procedures for payment verification and approval.

Protecting your SME from vendor payment fraud is an investment in the security and stability of your business. With ValidaCuenta, you have a powerful ally to secure every transaction and keep your finances safe.