HomeSmall BusinessCreditorWatch founder launches B2B platform to prevent bank fraud

CreditorWatch founder launches B2B platform to prevent bank fraud

CreditorWatch founder Colin Porter announced the launch of PayOK, a B2B SaaS platform designed to combat bank payment fraud.

Colin Porter, Founder and Managing Director of CreditorWatch

In addition, Porter, who also founded Avenue Bank, received US$3 million in a Series A financing of PayOk led by Nightingale Partners, valued at US$10 million.

According to Porter, bank payment fraud is a growing concern for any Australian business. “Regardless of size, location or industry, every business can become a victim of bank payment redirection, internal fraud and cybercrime,” he said.

Bank payment fraud costs Australian businesses millions of dollars each year. The Australian Federal Police has warned companies that business email intrusion (BEC) may occur, and cybercriminals will imitate suppliers to transfer business bank account information to their own accounts.

Last year, more than 3,300 BEC incidents were reported to ACSC through its reporting web portal, and more than half of the scams caused economic losses.

Growing threat

According to the Australian Federal Police data, The impact of BEC fraud on Australian victims is huge, and the total economic losses in the past 12 months have exceeded 79 million Australian dollars.

Scammers can destroy company emails by forging email accounts or websites, sending phishing emails, or using malicious software.

Last year, after trustees and managers approved $8.7 million in fraudulent invoices due to fake Zoom invitations, Levitas Capital became a catastrophic example of how a vicious cyber attack could make the company succumb.

According to data from the Australian Banking Association, in 2020 Australians lost more than A$850 million due to fraud, and payment redirection fraud caused Australian businesses to lose A$128 million.

A recent analysis of data by the ABA shows that more than 80% of Australians prefer to pay bills, check account balances or transfer money online.

The use of cash continues to decline. According to data from the Bank of Australia, after a 16% decline in 2020, ATM withdrawals fell by 20% in the year to August 2021.

How can PayOK help?

Many companies continue to rely on insecure and time-consuming methods, such as requesting bank statements or confirming supplier bank information over the phone.

PayOK says it can provide a simplified method of compliance that allows the company to immediately verify the correct bank details every time and continuously monitor alerts when any major changes occur.

Porter said: “I am applying the same expertise as the establishment of a credit bureau, which has helped thousands of companies get paid and reduce their credit risk, and used internal banking knowledge to solve payment problems that have become a key international issue. Targeted scam.”

PayOK intends to become an approved data recipient under the Consumer Data Rights (CDR) under the supervision of ACCC, which will ensure that the organization complies with strict data security requirements regarding governance, system control, testing, monitoring, and reporting.

“It is clear that payment fraud is underestimated, in many cases due to embarrassment. Businesses should not continue to hope that it will not happen again, PayOK will provide better solutions for continuous protection, thereby reducing risk and reducing fraud,” Said Lindsay Phillips, Chairman and Managing Director of Nightingale Partners.

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