Financial institutions (FIs) are increasing their efforts to combat the alarming rise in fraud cases. A prominent example is the U.K. PSR’s upcoming shift in liability to FIs, especially relating to Authorized Push Payment fraud. With the PSR’s new policy, both the sending and receiving FIs will be responsible for reimbursement of authorized fraud payments. It’s a trend expected to repeat across the globe.
Fraud patterns are also shifting. Fraudsters are moving away from account takeover schemes to focus on the weakest link: the customer. Add faster and instant payments into the mix, and it’s easier than ever for fraudsters to manipulate individuals into executing transactions. What can FIs do to combat fraud in an instant payments environment and avoid revenue losses when liability shifts?