Prevent Bank Fraud

With automated supplier data validation, two-factor authentication, and dual authorization, Graphite protects your company from fraudulent banking information entering your payment systems.

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Protect your business from costly bank fraud

Vendor fraud poses a risk to your operations. Here’s how it enters the system:

Invoice fraud

Invoice fraud happens when bad actors submit fraudulent or inflated invoices, aiming to trick companies into paying for services or goods that were never provided. Detecting these fraudulent invoices can be tough without a dedicated solution.

Solution: Graphite Connect automatically verifies supplier data and details before it hits the ERP, helping prevent unauthorized payments from being processed.

Business email compromise

Cybercriminals use deceptive tactics to gain access to trusted email accounts and issue false payment instructions. These fraudulent requests often appear to be from legitimate sources, such as suppliers or internal executives, tricking finance departments into rerouting payments.

Solution: With Graphite Connect, eliminate the biggest security vulnerability on your procurement team – human error. Every supplier must go through Graphite’s industry-leading supplier identity verification system to update payment details and account numbers, ensuring that bad actors can’t impersonate a supplier you do business with in order to divert payments.

Account changes

Fraudsters may attempt to manipulate supplier account details. This often results in payments being redirected to fraudulent accounts without the company’s knowledge.

Solution: Graphite Connect’s system makes sure that any change to critical supplier data, like banking information, is made by a verified user through two-factor authentication, telecom checks, and government ID verification before it’s accepted.

Overbilling

Overbilling schemes occur when suppliers submit inflated invoices, either by charging more than the agreed-upon amount or billing for services not rendered.

Solution: Graphite Connect is your supplier profile source of truth – giving your team visibility to supplier contracts, scopes of work, payment terms, and performance reviews so you can spot overbilling and effectively manage supplier delivery.

How Graphite helps prevent supplier bank fraud

Automated data validation

Supplier information like tax IDs and banking details are checked in real time so that only verified vendors are added to your payment system.

Multi-level Security Waterfall

Suppliers entering the Graphite network must pass several checks in order to verify their identity in order to update or add new information to their Graphite profile.

Graphite’s Security Waterfall includes advanced Multi-Factor Authentication, a Telecom check and, if needed, a government ID verification. The supplier fills in the routing and account info (one time) in their Graphite profile, then Graphite automatically validates routing, VAT ID, and IBANs. The supplier just needs to submit a bank form with the account number that we use to validate. This gives you confidence that any bank data provided was provided specifically by the user at the supplier assigned to the ‘banking’ role and their identify was verified with 2 factor authentication.

Graphite Connect currently provides bank routing number validation to help minimize payment failure. All sensitive data (including bank data) encrypted at rest and in transit with database-level encryption.

Real-time alerts & edit tracking

Graphite logs all changes to supplier data so you can see when fields are updated and who has made that change – whether on the buyer or supplier side.

Centralized document & contract management

Graphite’s platform stores all supplier documents, such as tax and banking information, in a secure, accessible location for easy retrieval and quick verification.

“Graphite Is Ahead of the Curve”: Bank Fraud Prevention Case Study

A fraudster who was getting identified quickly and easily within Graphite had to resort to offline methods to try to dupe a tech company into redirecting a vendor payment. Learn how Graphite helped with its bank fraud prevention and ID verification security.

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Why Graphite Connect?

New supplier validations

Graphite validates critical supplier data like tax ID, banking, and sanctions checks before bringing a supplier into the network.

Two-party verification

To mitigate fraud, two unique profile administrators must authorize changes to critical data before Graphite accepts those changes.

Updated data rescreens

Whenever a supplier updates critical data in their profile, Graphite validates that data to ensure accuracy and prevent fraud.

Graphite document management

Store supplier tax, banking, and contract documentation in a central location for easy reference. Graphite automatically notifies suppliers when documents are about to expire to ensure they’re renewed on time.

Global tax/banking validation

Graphite validates suppliers around the world. Wherever a supplier may be, Graphite validates the tax and banking information corresponding to their country.

Stop supplier bank fraud in its tracks

What is supplier bank fraud?

Supplier bank fraud occurs when supplier banking information is altered to divert payments into unauthorized accounts. This type of fraud can result in significant financial losses if it isn’t detected early on.

What are the consequences of supplier fraud?

Supplier fraud can cause immediate financial losses and strain relationships with legitimate suppliers. It can also lead to expensive recovery efforts and damage a company’s reputation, making fraud prevention a top priority for businesses.

How do you prevent vendor fraud?

Rigorous verification protocols are necessary to prevent bank fraud. Graphite Connect uses multiple layers of security, including automated data checks, dual authorization for account changes, and regular rescreening of supplier information to ensure accuracy and prevent fraudulent activity.

What are the common types of vendor fraud?

Vendor fraud comes in various forms, including invoice fraud, business email compromise, unauthorized account changes, overbilling, data manipulation, and ghost billing. Graphite Connect helps detect and prevent these types of fraud through automated systems and advanced validation processes.