Combating e-commerce fraud: How Allianz TradePay protects B2B transactions
The growth of business-to-business (B2B) e-commerce presents opportunities for growth, along with other challenges, such as online fraud. To protect e-commerce platforms and ensure their growth, companies must implement strict anti-fraud measures.
Business-to-business (B2B) e-commerce is rapidly becoming a key driver of digital economy growth. By early 2025, global B2B e-commerce sales reached $7.7 trillion, more than double the total business-to-consumer (B2C) e-commerce sales, according to the B2B E-commerce Association.
To capitalize on this growth, cybercriminals are increasingly targeting B2B e-commerce platforms with more diverse and sophisticated fraud attacks. From invoice fraud to buyer fraud, fraudsters are constantly evolving their strategies and refining new methods.
Businesses can counter cybercriminals' efforts and respond effectively with innovative anti-fraud solutions like Allianz Trade Pay. With a suite of built-in features specifically designed for B2B e-commerce businesses, Allianz Trade Pay helps you reduce the risk of fraud without compromising your operational efficiency or growth.
Evolving Threats in B2B Cyber Fraud
The shift from traditional business-to-business (B2B) business to digital transactions is driven by changing customer expectations and technological advancements. B2B buyers increasingly rely on digital data and information to make purchasing decisions, preferring the speed and efficiency of online interactions over the slow pace of traditional sales. For B2B sellers looking to maintain their competitive edge, this requires a shift toward digital platforms and online sales channels.
Recognizing this shift, cybercriminals are evolving their tactics to target B2B e-commerce companies: identifying vulnerabilities in platform security and exploiting weaknesses in the complex purchasing journeys typical of B2B companies. Additionally, the remote working models many companies have adopted since the global pandemic are expanding the scope of these attacks. With a growing proportion of daily business now conducted online, the opportunities for fraudsters targeting B2B companies are increasing.
Buyer Identity Fraud Risks for B2B E-Commerce Companies
As fraudsters discover effective techniques to exploit online businesses, certain types of fraud are becoming more prevalent among business-to-business (B2B) e-commerce companies. Buyer ID fraud is the most damaging type of commercial fraud and the most common type in 2023, according to a report by Allianz Trade. This type involves impersonating legitimate companies or businesspeople to make purchases, and manipulating delivery or payment information.
Buyer ID fraud is particularly dangerous for business-to-business (B2B) e-commerce companies. Because B2B transactions often rely on deferred payment terms and trust-based relationships between companies, fraudsters have a greater opportunity to impersonate legitimate companies and receive goods and services before they are detected. This potential is even greater in e-commerce environments, where orders are placed and transactions are processed digitally and without human intervention.
Additionally, B2B sales cycles are typically longer than B2C sales cycles and involve multiple teams within the company, meaning that buyer identity fraud can go unnoticed for weeks or months. Finally, because B2B purchases are typically larger and more valuable, buyer identity fraud is more likely to cause significant financial losses.
Allianz Trade Pay helps B2B e-commerce companies mitigate the risk of buyer identity fraud specifically. Its robust digital buyer onboarding procedures and Know Your Business (KYB) verification features ensure that all potential buyers are genuine and trustworthy, and that transactions are made to legitimate accounts.
The Role of Artificial Intelligence in Business-to-Business E-Commerce Fraud
Artificial intelligence (AI) is shaping the future of fraud, both for fraudsters and their victims. On the attacker side, generative AI tools make it easier to plan and execute large-scale buyer identity fraud. For example, sophisticated fake executive identities can now be created in seconds, using limited skills and minimal effort. AI tools help craft fraudulent emails and written transaction requests, using near-perfect language and tone of voice similar to those of corporate executives. Using AI, fraudsters can now clone the voices of business leaders and fake their images, making it difficult for even trained employees to detect fraudulent communications or instructions.
These same techniques can also be used to develop and scale fictitious corporate identities, including fake delivery addresses for shipping goods to and fake accounts for making fraudulent purchases and receiving payments.
However, despite these advantages for cybercriminals, AI also provides B2B e-commerce companies with more sophisticated tools to defend against fraud. Businesses can leverage AI to enhance fraud detection capabilities, for example, by detecting anomalies in customer data and monitoring inconsistencies in payment behavior. AI-powered tools also continuously learn and leverage existing data, making it easier for businesses to adapt to new threats and adopt new detection rules over time. As fraudsters continue to weaponize AI, it's essential for B2B e-commerce companies to adopt and develop their own AI tools.
How Allianz Trade Pay protects B2B e-commerce from fraud
We designed the Allianz Trade Pay platform to address the specific challenges facing B2B e-commerce businesses in the current fraud landscape, without the added complexity.
Its key features include digital buyer integration, which includes fraud prevention measures that vet potential buyers from the first moment of contact. The platform's advanced API-based technology enables instant verification of a company's legitimacy and creditworthiness. We verify the personal credentials of individuals placing orders, for example by checking their passport, driver's license, or national ID card. Furthermore, Allianz Trade Pay leverages open banking technology (in countries where available) to ensure the legitimacy of the buyer's bank account and its connection to their business. Together, these features help eliminate buyer identity fraud.
Furthermore, by automating the collection of late payments from customers (the payment collection process), Allianz Trade Pay reimburses B2B e-commerce retailers in cases of non-payment. This is a key safeguard, especially in cases of buyer identity fraud, where fake buyers disappear without intending to pay. Finally, Allianz Trade pay benefits from our partnerships with certified and approved financial institutions, as well as buy now, pay later (BNPL) providers. This enhances trust and reduces the likelihood of fraud by third-party providers.
Securing the growth of your B2B e-commerce business
The business-to-business (B2B) e-commerce sector is growing rapidly, but so are the threats facing businesses that trade online. Online fraud is a widespread and evolving challenge that targets businesses of all sizes and across all sectors.
To stay ahead, companies need solutions that go beyond passive surveillance. With Allianz Trade Pay, you have a powerful tool that combines buyer verification, fraud detection, and real-time protection—all in one platform.
In the fight against fraud, Allianz Trade Pay provides what B2B e-commerce companies need—a simple, secure, and reliable payment process. Contact our dedicated team for a demo and discover how Allianz Trade Pay can ensure your business's e-commerce growth.