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What Is B2B Fraud?

Fraud between companies can interrupt the flow of business and destroy reputations. Moreover, it is becoming increasingly difficult to identify and prevent. According to PYMNTS, global markets lost $4.2 trillion in 2019 alone due to B2B fraud. However, machine learning can identify fraud accurately before it has occurred.

Details

Why Is It Important to Have a Good B2B Fraud Model?

Fraud detection is one of the most useful applications of artificial intelligence. Specifically, the fraud model reveals attackers’ patterns of behavior so you can identify them in real time. As a result, you can avoid the fallout of a missing or delayed B2B payment.

What Internal Data Should I Have for a Good B2B Fraud Model?

In order to build a good fraud model, you should have a secure client list that includes company name, address, and financial information. Additional data can include a list of payment methods and encoding formats as well as contact details of anyone who made a transaction with the company. The easiest and most important step in prevention of B2B payment fraud is to verify the information provided by new potential clients.

What External Data is Essential for a Good B2B Fraud Model?

A good B2B anti-fraud model must first have a large database of partners. Information on anyone who has previously visited the business website also helps.

What External Data May Prove Useful for a B2B Fraud Model?

A black list of known scammers, an archive of B2B payment fraud incidents, and access to a watch list of international organizations like the Interpol or the FBI.

What Are the Main Challenges of this Use Case?

The biggest challenge is to find system weaknesses during transactions while ensuring that it is still flexible and won’t harm casual visitors.

Interesting Case Studies and Blogs to Look Into

Securing B2B Payments Report
Securing B2B Payments Report: September 2019

Tangible Examples of Impact

$8.5 million was stolen in an embezzlement scheme at construction company Marco Contractors, according to Pittsburgh Post-Gazette reports. The former controller at the firm, Sue O’Neill, reportedly admitted to the fraud in federal court last week, a scam she said involved manipulation of the firm’s payroll processes as well as accounts payable (AP). Reports noted that O’Neill allegedly issued payroll checks deposited directly into a separate company account, while also initiating wire transfers and writing company checks made payable to that company, subsequently manipulating AP records to suggest they were legitimate vendor payments.

Corporates Brace for BEC Scam Ramp-Up

Relevant datasets

IBM MarketScan Research Databases

by ibm-the-weather-company

IBM MarketScan Research Databases provides one of the oldest continually-updated collection of health claims data in the USA. Organizations use this data to prove their value to healthcare professionals, insurers, and private individuals.

The data includes drug claims, dental claims, lab results, hospital discharges, and EMR data for millions of people in the country. It also contains workplace productivity data, telling institutions how many workplaces absences they suffer and how many of their healthcare workers suffer disability due to their work. 

4 (1)   Reviews (1)

Quadrant – Point of Interest (POI) Data

by quadrant logo

Quadrant – Point of Interest Data measures physical store and website visits so companies can evaluate their performance. Quadrant provides nineteen different PoI categories; they also update their data regularly to provide the most efficient analysis.

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GIATA Multilingual Hotel Guide

by GIATA logo

GIATA Multilingual Hotel Guide provides hotel portfolio information for a diverse audience available in 24 languages.

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Edge by Ascential – Retail Insight

by edge-by-ascential

Included as part of a software service, Edge by Ascential’s Retail Insight tracks retail data on thousands of retailers in nearly 200 markets to help you analyze your competition, measure your customers’ engagement, track market trends, and predict product performance. 

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