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Data for today’s episode is provided by Mercator Advisory Group’s report – Faster and Real-Time Payments Fraud.
Four key areas of focus for Faster Payments:
- Strengthen Authentication: Deny access to bad actors from the beginning
- Invest in Analytics: Each payment type is accompanied by a great deal of data
- Leverage Artificial Intelligence: Data driven insights are needed to drive business rules without human intervention
- Take a balanced approach: Stopping fraud is the goal, but so is enabling legitimate transactions
- For Large Banks: The risk of NOT having a competitive faster payments offering is greater than the fraud risk
- For Small Banks: The risk of fraud outweighs the risk of not having a faster payments offering
Financial institutions are implementing or planning new faster payment solutions from same day to real-time transactions and creating roadmaps for new products with faster payment solutions embedded. Simultaneously, attention is being given to protecting faster transactions and preserving the trust customers have in their banks and credit unions to protect their financial transactions. A new research report from Mercator Advisory Group titled Faster and Real-Time Payments Fraud reviews these trends, challenges, and solution.
“At the same time that financial institutions are wrestling with new fraud types and the rise of tactics like business email compromise, they are rolling out new faster payments solutions that innately allow less time to detect criminal activity. The good news is that the security providers are responding with solutions. The implementation and adaptation of these solutions to individual operating environments needs to be the focus,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.
This research report has 15 pages and 3 exhibits.
Companies and other organizations mentioned in this report include: ACH Alert, Brighterion, Early Warning, Experian, Faster Payments Service (U.K.), Feedzai, Federal Reserve, FICO, GIACT, LexisNexis, Mastercard, NICE Actimize, NuData Security, Rambus, RiskRecon, The Clearing House, Verafin, and Visa.