Think your bank account verification process confirms ownership? Think again.
How procurement and finance departments verify banking information generally falls into these three buckets:
- Collecting a voided check or account info on bank letterhead
- Calling the vendor to confirm the change
- Multi levels of internal approvals for changes
All of these seem, on the surface, to be solid, but are not infallible in defending the vendor master from infiltration by fraudsters. If your organization is relying on any of these three ways to ensure the validity of your vendor master file's banking info, you are likely leaving holes wide enough for a fraudster to walk right in.
Let’s break each one down: