These email scams cost companies $1.7 billion last year, according to the Federal Bureau of Investigation, and have been on the rise as fraudsters attempt to exploit uncertainty caused by the COVID-19 pandemic.
While big companies are frequent targets of scammers, smaller companies tend to be more vulnerable because they have less sophisticated internal controls.
To help small businesses spot vulnerabilities, the bank is offering to add a “safety meter” to customer account dashboards which graphically shows how they score on setting safeguards, including suspicious transaction alerts.
Since the advent of paper checks, banks have encouraged customers to take steps to thwart fraud. That remains important because about 40% of business-to-business payments are still made by check, according to the Association for Financial Professionals.
But the move toward fast digital payments has increased the need for much stronger controls, said Jennifer Barker, a wholesale payments executive at JPMorgan. For JPMorgan, less fraud should make for happier customers and save the bank the cost and hassle of having to recover funds. (Reporting by David Henry in New York; Editing by Michelle Price and Andrea Ricci)