How Social-Engineering Fraudsters Are Targeting Supply Chains

Manufacturing has recently undergone a huge shift from analog processes to advanced automation. Teams now rely on enterprise resource planning systems, procurement platforms, supplier portals and automated payment workflows. But while automation has solved many efficiency challenges, it has also changed how fraud works.

Fraudsters no longer need to hack into systems. They simply mimic trusted business processes, allowing fraudulent payments to move through workflows unnoticed. In fact, data found that 92% of attacks impersonate trusted vendors or executives, with 59% using multiple tactics to enhance legitimacy. A single fraudulent payment can delay critical suppliers, stall production lines and create costly downtime across the manufacturing operation.

While automation is essential for keeping pace with supply chain demands, verification processes must evolve alongside it to prevent fraud and costly downtime.

Manufacturing inherently works across large, frequently global ecosystems. Teams balance a mix of suppliers, logistics partners and distributors. With each new vendor or team that’s added into this ecosystem, a new relationship is created. For years, these relationships have relied on trust between humans conducting business.

This story was originally published by SupplyChainBrain. Read the full story at SupplyChainBrain →