The payments industry must tool up in its ongoing battle against the scammers
Various fraud prevention technologies are deployed across the payments industry, but there are still areas where technology is underutilized in combatting fraud related to cybercriminal attacks.
Market practitioners are constantly deploying new and different technologies and methodologies to combat payee scams. However, a recent report by payments industry group P20 highlights a perceived gap in customer protection – payment service providers need to do more to tackle scams by expanding the use of technology for risk analysis and fraud prevention.
Businesses have implemented a patchwork of fraud prevention solutions, ranging from best practice to no practice at all. But since the start of the pandemic there has been a huge increase in fraudulent activity, which has exposed many areas where companies are vulnerable.
While rule-based systems are powerful in detecting known fraud patterns, machine learning can point to yet unknown types of fraud
That is the view of FIS senior vice president Stuart Eveleigh, who says that although new initiatives such as confirmation of payee are being introduced, adoption can be slow as players hold back due to cost concerns.
“As the world moves toward real-time payments, some risk analysis and fraud prevention technology still operates using a batch model,” adds Andrew Davies, vice president global market strategy for financial crime risk management solutions at Fiserv.