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The latest update of the FBI on business-to-business payment fraud reported that over 24,000 companies have been victims of a compromise of corporate email (BEC), otherwise known as scams, with total losses of over $ 2 billion. In addition, increasingly sophisticated cyber attacks use social hacking to send changes to simulated bank accounts. If bank checks take weeks, this is a great opportunity for bad actors and a big risk for unprepared companies. The good news is that companies are fighting with blockchain. In this VIDEO interview to SAP TechEdI witnessed a demonstration of how the blockchain offers buyers and suppliers an additional level of data security and integrity. & Nbsp;
"Blockchain It brings confidence to B2B payment processes such as the creation, updating and exchange of information on suppliers' bank accounts, "said Torsten Zube, head of the blockchain, Innovation Center Network of SAP." Finance could be under pressure to meet the discount deadlines. External verification agencies increase potential risk exposure. Fraud can also happen from within the company. The integration of the blockchain into the payment process provides employees with fast and accurate data sources. "
Here's how it works. Suppliers enter their bank information directly on the chain, which automatically distributes updates to all designated organizations that purchase goods and services from them. This saves time for both suppliers and buyers by eliminating manual and error-prone processes such as multiple phone calls to update information across multiple companies and systems.
Prevent fraud before this happens
One of the biggest advantages of using blockchain to verify B2B payment process data is proactive fraud prevention. This is because everyone – suppliers and buyers – has a single source of truth that is not controlled or owned by any entity. It does not eliminate external verification agencies, but rather changes the focus of internal financial teams.
"Infusing blockchain capacity in the execution processes of an SAP customer on payments SAP S / 4HANA Cloud It will provide companies with personal data from highly secure suppliers such as bank account information, "said Zube." The attacks will immediately become visible, allowing companies to move security from detection to prevention. This brings a revolutionary confidence in many industries ".
& nbsp; limiting payment fraud
This pilot project does not concern the automation of paper-based processes. The idea is to re-imagine how companies manage supplier updates and by extension, billing and payments. Zube stated that companies are strongly motivated to use blockchain for both security and practical reasons.
"All participants can maintain a certain level of privacy with respect to information on their bank accounts and partnerships," he said. "At the same time, all users on the network can easily verify payment information."
He added that blockchain offers equally important value by supporting shared Know Your Customer (KYC) processes. Once verified on the immutable log, the supplier's bank account information must not be re-verified by others on the trusted chain.
The road to follow: conversations guided by the use case
One of the most overlooked, but critical things that are missing from many blockchain conversations is how companies will link all information in the chain to current processes.
"The last mile is much longer than a mile," Zube said. "In the network-based business model, organizations must initiate blockchain discussions with their specific use cases and how they will share the chain data through the systems inside and outside the Company: Link blockchain-enabled data to real-world business processes. "
Greater security can not come soon enough
Meanwhile, the international threat of payment fraud continues to grow, with a 136 percent increase in global losses over the past two years. It is not a surprise IDC the cross-border payment networks planned using blockchain will transmit more than $ 60 billion by 2023. Move on the scammers, the blockchain is on you.
This blog also appeared on SAP news center.
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The latest FBI update on business-to-business payment fraud reported more than 24,000 businesses compromised by corporate email compromise (BEC), otherwise known as scams, with total losses of over $ 2 billion . In addition, increasingly sophisticated cyber attacks use social hacking to send changes to simulated bank accounts. If bank checks take weeks, this is a great opportunity for bad actors and a big risk for unprepared companies. The good news is that companies are fighting with blockchain. In this VIDEO interview at SAP TechEd, I saw a demo of how the blockchain provides buyers and suppliers with an additional layer of data security and integrity.
"Blockchain confers confidence in B2B payment processes such as creating, updating and exchanging information on suppliers' bank accounts," said Torsten Zube, head of the blockchain, Innovation Center Network of SAP. "The finances could be under pressure to meet the discount deadlines: external verification agencies increase the potential exposure to risk fraud can also happen from within the company. payment process provides employees with fast and accurate data sources. "
Here's how it works. Suppliers enter their bank information directly on the chain, which automatically distributes updates to all designated organizations that purchase goods and services from them. This saves time for both suppliers and buyers by eliminating manual and error-prone processes such as multiple phone calls to update information across multiple companies and systems.
Prevent fraud before this happens
One of the biggest advantages of using blockchain to verify B2B payment process data is proactive fraud prevention. This is because everyone – suppliers and buyers – has a single source of truth that is not controlled or owned by any entity. It does not eliminate external verification agencies, but rather changes the focus of internal financial teams.
"The infusion of blockchain capabilities into the payment execution processes of an SAP customer on the SAP S / 4HANA Cloud will provide companies with highly secure supplier data such as bank account information," said Zube. "The attacks will immediately become visible, allowing companies to move security from detection to prevention, which brings revolutionary confidence in many industries."
payment liminating fraud
This pilot project does not concern the automation of paper-based processes. The idea is to re-imagine how companies manage supplier updates and by extension, billing and payments. Zube stated that companies are strongly motivated to use blockchain for both security and practical reasons.
"All participants can maintain a certain level of privacy with respect to information on their bank accounts and partnerships," he said. "At the same time, all users on the network can easily verify payment information."
He added that blockchain offers equally important value by supporting shared Know Your Customer (KYC) processes. Once verified on the immutable log, the supplier's bank account information must not be re-verified by others on the trusted chain.
The road to follow: conversations guided by the use case
One of the most overlooked, but critical things that are missing from many blockchain conversations is how companies will link all information in the chain to current processes.
"The last mile is much longer than a mile," Zube said. "In the network-based business model, organizations must initiate blockchain discussions with their specific use cases and how they will share the chain data through the systems inside and outside the Company: Link blockchain-enabled data to real-world business processes. "
Greater security can not come soon enough
Meanwhile, the international threat of payment fraud continues to grow, with a 136% increase in global losses over the past two years. Not surprisingly, IDC has provided cross-border payment networks using blockchain to deliver over $ 60 billion by 2023. Move on the scammers, the blockchain is on you.
This blog has also appeared on the SAP News Center.
