Why CFOs Must Embrace a Multi-Layered Fraud Defense Strategy

In the rapidly evolving landscape of financial management, chief financial officers (CFOs) find themselves in a high-stakes battle. The call for a robust, multi-layered defense against fraud is no longer a distant goal but an immediate necessity. According to PYMNTS.com, William Fitzgerald, WEX Vice President of Global Fraud and Financial Crimes shares vital insights in the PYMNTS eBook, highlighting why a mix of people, processes, and technology are crucial in confronting today’s fraudulent threats.

The Rising Tide of Fraud

2025 has been critical for CFOs around the globe. While digital transformation fuels unprecedented opportunities for agility and growth, it has simultaneously opened the doors to adversaries leveraging advanced AI to mount relentless and complex attacks. Research indicates that 80% of businesses faced fraudulent activities in the last year alone, and the stagnation in digital transformation—seen in the delayed automation of supplier payments—leaves corporations alarmingly vulnerable.

Building a Proactive Defense System

The era where businesses react only after fraud has transpired is behind us. Instead, the focus is shifting towards proactive construction of an all-encompassing defense framework. This involves integrating AI-powered detection models, secure payment options like virtual cards, and embracing data-driven insights to enhance the company’s fraud posture. By automating processes and utilizing dynamic security prompts, organizations can effectively deter fraudulent attempts.

The Human Element in Fraud Prevention

Technology, however, is just one piece of the puzzle. A significant shift involves fostering a corporate culture where every employee partakes in maintaining security. From training on recognizing fraud attempts to creating effective communication channels for reporting suspicious activities, empowering the human workforce is indispensable. Senior leaders must instill confidence among their teams to act as vigilant defenders against fraud.

Innovating Without Compromising Security

As financial technology marches forward, the temptation to sacrifice security for speed must be resisted. Instead, a balanced approach is essential, where innovation in payments is matched by a robust security infrastructure. Leaders must transition from reactionary measures to building a resilient anti-fraud environment through AI, process automation, and employee empowerment.

Conclusion: Setting the Tone for Future Resilience

Looking toward 2026 and beyond, resilience is the guiding principle for CFOs. The path forward lies in embracing technology, utilizing AI tools, and creating an environment where fraud prevention is a shared responsibility. By setting this proactive tone, financial leaders can ensure that their companies not only survive but thrive in a secure and trustworthy landscape.