Content by Suparna Goswami

AI Is Changing the Face of Fraud - and Fraud Fighting

Suparna Goswami , Rashmi Ramesh  •  September 4, 2024

While the criminals may have an advantage in the AI race, banks and other financial services firms are responding with heightened awareness and vigilance, and a growing number of organizations are exploring AI tools to improve fraud detection and response to AI-driven scams.

Fresh Nacha Rules Push Banks to Revise Policies, Procedures

Suparna Goswami  •  September 2, 2024

Nacha's new ACH rules require all banks to update policies and procedures to ensure better fraud detection. These changes help banks comply with new standards without relying solely on technical solutions, said Devon Marsh, managing director of ACH network rules and risk management at Nacha.

US Moves Toward Expanding Reg E to Address Payment Fraud

Suparna Goswami  •  August 29, 2024

Recent developments suggest the U.S. is taking a more serious approach to holding faster payments platforms accountable for scams. It's unlikely any changes will occur before the November U.S. election, but the move toward more regulation is a good start, said Ken Palla, retired MUFB Bank director.

Is AI Making Banking Safer or Just More Complicated?

Suparna Goswami  •  August 23, 2024

In today’s AI-driven world, banks are becoming increasingly vigilant, often freezing accounts or demanding extensive documentation at the slightest hint of suspicious activity. Sending money, once a straightforward task, is now fraught with complexity.

Insurance Fraudsters Mirror Tactics From Banking Industry

Suparna Goswami  •  August 12, 2024

The insurance industry faces rapidly changing fraud tactics from sophisticated cybercriminals, and identity theft and synthetic fraud are becoming critical challenges. Experts discuss how cybercrime complicates fraud detection and share lessons the insurance industry can learn from banking.

Fighting Scammers with Flexible Instant Payment Choices

Suparna Goswami  •  August 8, 2024

Giving customers more flexibility in instant payment systems could give users more control over their transactions and help fight scammers. An option to delay payments could introduce the needed friction to stop fraudulent payments, said fraud experts Eva Velasquez and Ken Palla.

Overcoming Human Error in Payment Fraud: Can AI Help?

Suparna Goswami , Rashmi Ramesh  •  August 7, 2024

Human error is a major contributor to payments fraud, but only about 5% of organizations have fully automated their payment processes to reduce mistakes. Experts say artificial intelligence-enabled automation will help reduce risks, but the benefits of this technology are still a distant reality.

Reimbursement Strategies Drive Down APP Scam Losses in UK

Suparna Goswami  •  August 2, 2024

Despite making some progress in tackling APP scams, smaller payment firms still struggle with high fraud rates compared to large banks, as highlighted in a report by the U.K.’s Payment Systems Regulator. Customer reimbursement guidelines have prompted banks to scrutinize suspicious payments.

Account Takeover Fraud Declines in Financial Services

Suparna Goswami  •  July 30, 2024

Account takeover fraud in the financial services industry is declining in contrast with other industries such as retail and hospitality. Researchers at Human Security attribute the nearly 50% reduction to one of the basic controls in cybersecurity: multifactor authentication.

Tackling Fraud in AI Deepfakes With Layered Controls

Suparna Goswami  •  July 26, 2024

Banks need to make changes to fraud programs to tackle mule accounts in the age of AI. Organizations need to move away from having one control to handle all suspicious accounts, said Anthony Hope, group head of AML, counter-terrorist financing, and fraud risk at NAB.

Senator: Top Banks Only Reimburse 38% of Unauthorized Claims

Suparna Goswami  •  July 24, 2024

During a hearing Tuesday, U.S. Sen. Richard Blumenthal, D-Conn., revealed that Bank of America, JPMorgan Chase and Wells Fargo only reimbursed 38% of unauthorized Zelle transaction claims - leaving consumers on the hook for $100 million in fraud losses. The banks disputed the committee's findings.

Transforming Knowledge Management With Generative AI

Suparna Goswami  •  July 23, 2024

Aboitiz Data Innovation faced a unique challenge: Design a wholesale architecture for a generative AI lab for a bank while ensuring accurate responses and maintaining strict information security protocols, said Guy Sheppard, chief commercial officer at Aboitiz Data Innovation.

Banks Need More Time to Adopt Real-Time Payments

Suparna Goswami  •  July 19, 2024

Financial institutions embracing real-time payments face the challenge of integrating new technologies and adapting behaviors. That's why initially most banks are only offering customers the option to receive payments, said Elena Casal, chief client officer at The Clearing House.

As FedNow Marks First Year, FIs Need to Show More Enthusiasm

Suparna Goswami  •  July 18, 2024

As the FedNow instant payment platform celebrates its one-year anniversary, Peter Tapling, board member of the U.S. Faster Payments Council, doesn't understand why financial institutions aren't bringing out new products that incorporate faster payments.

Securing M&A Transactions With Cyber Due Diligence

Suparna Goswami  •  July 16, 2024

An M&A due diligence process must include a comprehensive cybersecurity risk assessment, including all assets, threats, vulnerabilities and control measures, said Bradley Schaufenbuel, vice president and CISO at payroll and HR solution company Paychex.