Report reveals how banks can tackle new payment scams | ACI Worldwide

Find out how AI is playing an increasing role in tackling fraud in the payments industry. The video above provides an insight into a new report from ACI Worldwide that could contain the answers.

There’s no question about it, fraud is a real barrier to the widespread adoption of instant payments. It’s a problem across sectors but is particularly widespread in payments, where the potential for scammers to make money takes many forms.

As it happens, fraud growth slowed in 2023 but losses remained high. Identity risk management company Alloy surveyed hundreds of decision makers across US and UK banking and finance to find that 25% of companies lost over $1M to fraud and 61% of companies saw an increase in attempted fraud attacks committed through consumer accounts.

According to Mastercard, ecommerce fraud is predicted to exceed $48 billion in 2023. North America was identified as having the largest fraudulent transaction value of any regional market and ​​across Europe, Germany and France were the hardest hit.

Another huge problem is Authorised Push Payment fraud. It’s on the rise as real time payments see enormous annual growth. All scammers need to do is trick a consumer into sending money to a mule account they control, before bouncing the funds somewhere else, or converting them to crypto.

Legislation has been put in place to protect consumers in the UK, such as the Authorised Push Payment (APP) reimbursement legislation, which enables scammed consumers to reclaim 100% of their funds lost to this type of fraud. However, as useful as this might be to consumers on the surface, it doesn’t help banks and it actually presents more first party fraud opportunities to organised criminals who could use the prospect of reimbursement as a way to trick the lender.

This is where the new Scamscope report from ACI Worldwide and GlobalData comes in. Readers will find out more about the scope of the problem across the world, what’s needed to tackle this increasing challenge and the pivotal role AI could play. Fraud prevention is one of the more meaningful use cases of the much lauded technology, for financial businesses.

There’s in depth research into the instant payment landscape of regions such as the US, UK, India, Australia, Brazil and Saudi Arabia. You’ll find out information about the challenges they face and the regulations they’re bringing in to deal with it.

If you’re in need of a further taster, this interview with Jackie Barwell, Director of Fraud Solutions for ACI Worldwide lets us know what to expect. She talks us through the latest trends and the story behind the report.

Be sure to download the Scamscope report today to understand the trends, get the latest figures, and get tooled up.