A recent Guardian article (link) reveals a troubling new pattern: while domestic fraud in the UK is starting to decline thanks to regulatory changes and reimbursement frameworks, international payment fraud is climbing fast — especially via Authorised Push Payment (APP) scams.
According to UK Finance, losses from international APP fraud nearly doubled last year. For treasurers handling high-value, cross-border payments, this isn’t just another warning headline — it’s a call to action.
Why Should Treasurers Care?
Fraudsters are shifting their focus. With tighter controls and consumer protection now in place for domestic payments, corporate and cross-border flows are the new frontier.
Corporate treasury teams — typically responsible for approving or initiating large vendor payments, payroll runs, and intercompany transfers — are increasingly in the firing line. A single fraudulent instruction can cost six or seven figures, and the chances of recovery are slim once funds leave domestic clearing systems.
Unlike retail consumers, corporate victims are rarely reimbursed. There are fewer safety nets, especially when payments cross borders.
The Risks Lurking in Your Payment Process
Some of the most common weaknesses exploited in corporate fraud cases include:
- Poorly maintained vendor master data
- Inadequate change request procedures
- Over-reliance on email-based approvals
- Gaps in segregation of duties
- Lack of real-time validation of payment data
These risks increase as treasury departments become leaner and more digital. Automation brings efficiency, but also reduces human checkpoints — giving fraudsters a clearer runway.
What Can Treasurers Do?
Payment fraud prevention is no longer just an IT or finance operations issue — it’s a treasury concern. Treasurers should consider:
- Reviewing their internal controls around payment approvals and bank detail changes
- Implementing multi-factor verification processes for critical changes
- Educating internal stakeholders on social engineering and business email compromise
- Exploring tools that can verify payee information before payments are made
One such tool is Verification of Payee (VoP) — a process increasingly used in domestic markets to validate that the account name matches the account number before a payment is executed. While still limited in cross-border coverage, it represents a step in the right direction.
Learning More: The Broader Anti-Fraud Landscape
VoP is part of a wider conversation around payment fraud prevention. For treasurers interested in exploring these developments, a recent webinar brought together industry experts — including a corporate treasurer and a European CoP (Confirmation of Payee) specialist — to discuss VoP’s role, its limitations, and how it fits into a broader fraud prevention strategy.
Register here to join a masterclass about this topic:
🎥 Masterclass on VoP and Payment Fraud
Final Thought
As fraudsters get more sophisticated, so must treasury teams. If your international payments process hasn’t been reviewed in the past 12 months, now is the time.
The fraud shift is clear: domestic systems have been tightened. Cross-border payments are now the weak spot. And for treasurers, ignoring that is a risk no risk manager should accept.
Also Read
- Pix Reinvents Recurring Payments — and Corporate Treasurers Take Note
- Open Banking: A Missed Opportunity for Corporate Treasurers in the UK and EU?
- The 5 Biggest Challenges Facing Treasury Teams Today: Analyst vs. Manager Perspective
- Nordics and Estonia Develop Offline Card Payment Systems: A Wake-Up Call for Corporate Treasury
- Why was Treasury 2.0: Future-Proofing Finance with AIWritten and Why It Matters Now
- Data is the new liquidity: Why Treasurers must champion technology for better data management
- Why New Treasury Tech Can Fail (Before It Even Starts): The Hidden Challenge Behind Every Implementation
- Do You Have a Right to a Bank Account? Here’s How It Works for Individuals and Businesses
Join our Treasury Community
Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information.