'The real power is that AI can actually predict or detect patterns of behavior and suspicious activity that would take a lot longer for traditional methods to uncover.'
Real-time payments systems have globally increased the threat of related fraud. Will FedNow follow the trend?
Fraud is rising with the increased reliance on alternative payment methods, and AI could stop it. FIs have difficulties in adopting the tech.
American Banker discusses the evolution of online lending fraud and the industry's vulnerabilities; the combination of synthetic identities and multiple loan inquiries known as loan stacking have increasingly become a threat in the industry; while a number of new systems have been implemented to mitigate fraud the nature of the business makes it more susceptible with fraud prevention solutions becoming more prevalent. Source
Financial institutions have access to a vast amount of customer data, including account information, transaction history, and credit scores. However, much of that data is siloed by different payment platforms and networks and out of reach when fraud teams need it most. Banks can address this data drought problem by finding ways to modernize their tech stack, getting creative with existing rails, and leaning on providers to gain scale.
The head of fraud and data strategy at AtData, Diarmuid Thoma, talks about the importance of email addresses in preventing fraud.
The UK’s Financial Conduct Authority has issued new guidance to payment providers and e-money companies on safeguarding customers’ funds; the...
Insights have found the switch to more digital transaction since the start of the COVID-19 pandemic show that individual and organizational risk is even greater now.
The idea is to protect consumer accounts from fraud so well that the company is backed by PayPal and used by the paytech firm for its protection.
A husband and wife from Sri Lanka were arrested in Canada for fraud and money laundering; the couple reportedly used fraudulent checks and synthetic identities for fraudulent charges and purchases; both are charged with fraud of CAD5,000 ($3,729) and possession of proceeds obtained of over CAD5,000 ($3,729); the fraudulent charges are an example of the emergence of sophisticated synthetic identities that are more difficult to be detected by fraud prevention systems. Source