The Human Firewall: Why Training, Vigilance and Verification Still Matter Most in Treasury Fraud Defence

Published: March 25, 2026

Protecting company assets from fraud cannot rest solely with IT, says Tom Gregory, Head of Treasury Management, Merchant & Government Banking, TD Bank US. He explores the role of human judgment as a treasury and finance defence mechanism.

With real-time payments (RTPs) becoming the norm, treasury teams are gaining speed, certainty, and operational efficiency. At the same time, fraud schemes are growing more sophisticated, with bad actors exploiting digital channels and human vulnerabilities. The result is less margin for error and higher stakes when things go wrong.

Treasury teams are navigating one of the most dynamic operating environments in decades. Today, treasury sits at the intersection of finance, technology, and operational risk. That position brings added responsibility and greater influence across the organisation.

Yet within many organisations, there remains a clear gap between perceived preparedness and actual readiness when it comes to fraud. A TD survey carried out in late 2025 found that 82% of treasury professionals express confidence in their fraud defences, yet 62% of employees still fail fraud tests. This disconnect highlights a critical reality: protecting company assets from fraud cannot rest solely with IT. It must be owned by treasury and finance, which are closest to the systems, processes, and decisions where risk materialises. One of the most important tools at their disposal is the ‘human firewall’.

Fraud resilience depends on a layered approach. Controls, policies, and technology all matter, but they work as intended only when reinforced by consistent and sound human judgment. People, processes, and discipline remain just as essential as technology. In today’s environment, three elements consistently make the difference: training, vigilance, and verification.

Training: building readiness

Fraud prevention training often focuses on awareness, highlighting common scams or emerging threats. That foundation matters. But effective training goes further. It prepares employees to act decisively when something does not feel right.

Treasury teams should prioritise training that reflects real workflows and responsibilities. Scenario-based learning aligned to actual payment processes, approval chains and vendor interactions is far more effective than generic, once-a-year modules. Training should also extend beyond treasury to anyone who can initiate, approve, or modify payment details.

Training must be continuous and reinforced throughout the year. Short refreshers, periodic simulations, and clearly defined escalation paths help ensure employees both recognise fraud risks and respond quickly and correctly under pressure. When employees practice scenarios in advance, response becomes instinctive rather than hesitant. That confidence matters most in moments where speed, uncertainty, and authority pressure converge.

Vigilance: making fraud monitoring a daily discipline

In an RTP environment, periodic reviews and end-of-month reconcilements are no longer sufficient. By the time issues surface, the opportunity to intervene may already have passed..

Vigilance must be built into daily operations. Regular, daily review of account activity, particularly for high-velocity or high-value payment channels, is essential. This includes monitoring for unusual payment timing, unexpected changes to beneficiary information, new profiles, or deviations from established patterns.

Many commercial banking platforms provide alerts, dashboards, and monitoring tools designed to surface anomalies. These tools add value only when they are actively reviewed and acted upon. Vigilance is both procedural and cultural. Treasury teams must be empowered to question irregularities, even when they appear minor. Fraud rarely begins with a large transaction. It often starts with small tests designed to see whether anyone is paying attention.

Consistent review also creates institutional memory. Over time, teams become better at distinguishing normal variation from meaningful risk signals that warrant escalation.

Verification: knowing when to slow down

While RTPs reward speed, effective fraud defence depends on knowing when to pause. Verification introduces deliberate friction at critical moments, helping organisations avoid irreversible mistakes. In a real-time environment, knowing when to slow down is just as important as knowing how to move fast, and often more difficult.

Strong access management policies are foundational. Treasury teams should participate regularly in risk and control self-assessments to ensure user entitlements align with job responsibilities and that dormant or excessive access is promptly removed. Cross-validation of profile changes, whether for employees, suppliers, or customers, is equally important.

Independent channel verification remains one of the most effective safeguards available. Confirming requests through a separate, trusted channel can prevent fraudulent transactions that appear legitimate on screen. These procedures must be standardised and consistently applied, regardless of urgency or seniority. When verification is embedded into standard workflows, it becomes routine rather than obstructive, reducing the likelihood that safeguards are bypassed under pressure.

Power to the people

Together, these practices illustrate where fraud defences most often succeed or fail in real‑time treasury environments.

By investing in targeted training, fostering a culture of vigilance, and enforcing disciplined verification protocols, treasury teams can strengthen the human firewall as fraud tactics continue to evolve. In a real-time world, that firewall remains one of the most effective defences organisations have.

Technology will always be part of the answer. But as treasury functions modernise and payment speeds accelerate, well-trained, alert and empowered people remain the last and best line of defence.