09/26/2024 | Press release | Distributed by Public on 09/26/2024 01:11
\r\nSeptember 26, 2024
September 26, 2024
Consumers love the convenience of real-time payments, but detecting real-time fraud takes hyper-vigilance -and collaboration.
\r\n"}}" id="text-51eeb8a9c2" class="cmp-text">Consumers love the convenience of real-time payments, but detecting real-time fraud takes hyper-vigilance -and collaboration.
Consumers have flocked to the speed and convenience of instant payments. However, there's a flipside: instant payment fraud. And it's a topic that's not getting nearly enough attention.
\r\nAt a recent fintech conference, an executive from The Bank of New York Mellon encouraged attendees to proactively tackle instant payment fraud, emphasizing the importance of data and information sharing.
\r\nWe agree-and have collected several additional considerations for how banks can securely manage instant payments across the multiple networks emerging to support these real-time transactions.
\r\nReal-time payments (RTPs) have skyrocketed. The US's 2023 rollout of FedNow joins the growing roster of RTP networks already implemented by approximately 80 countries.
\r\nThat's good news for banks and payment service providers: As RTP networks multiply, it expands these businesses' reach-that is, they gain more opportunities to transact with counterparties, which invariably attracts a larger customer base.
\r\nEqually important, the RTP trend now extends to corporate and institutional clients, and the promise of international RTP is getting closer.
\r\nBut juggling multiple RTP systems incurs not only complexity and cost but also introduces the possibility of real-time payment fraud. In parallel with RTP's rapid adoption has been a global wave of scams, including authorized push payment (APP) fraud. Financial crime and fraud are projected to cost banks and financial institutions $40.6 billion annually by 2027 globally.
\r\nConsumers have flocked to the speed and convenience of instant payments. However, there's a flipside: instant payment fraud. And it's a topic that's not getting nearly enough attention.
At a recent fintech conference, an executive from The Bank of New York Mellon encouraged attendees to proactively tackle instant payment fraud, emphasizing the importance of data and information sharing.
We agree-and have collected several additional considerations for how banks can securely manage instant payments across the multiple networks emerging to support these real-time transactions.
Real-time payments (RTPs) have skyrocketed. The US's 2023 rollout of FedNow joins the growing roster of RTP networks already implemented by approximately 80 countries.
That's good news for banks and payment service providers: As RTP networks multiply, it expands these businesses' reach-that is, they gain more opportunities to transact with counterparties, which invariably attracts a larger customer base.
Equally important, the RTP trend now extends to corporate and institutional clients, and the promise of international RTP is getting closer.
But juggling multiple RTP systems incurs not only complexity and cost but also introduces the possibility of real-time payment fraud. In parallel with RTP's rapid adoption has been a global wave of scams, including authorized push payment (APP) fraud. Financial crime and fraud are projected to cost banks and financial institutions $40.6 billion annually by 2027 globally.
Because money moves immediately and irrevocably through RTP rails, fraud detection needs to occur before transactions take place.
\r\n"}}">Because money moves immediately and irrevocably through RTP rails, fraud detection needs to occur before transactions take place.
\r\nNetwork and counterparty collaboration is critical to make this happen. For example, sharing the data characteristics of fraudulent transactions through payment market infrastructures-the systems owned by central banks that allow for safe open payments-will help banks and payment service providers combat counterparty fraud and better protect end customers.
Here are four actions to take for securing RTP transactions across multi-network ecosystems.
\r\nSecurely managing instant payments across multiple networks takes hypervigilance and collaboration. But in an increasingly real-time world, it's a must-do for banks and payment service providers.
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For more on real-time payment fraud, read our white paper, "A Perspective on Fraud: Resilient Real-Time Payment Hubs with Multiple Clearings."
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Network and counterparty collaboration is critical to make this happen. For example, sharing the data characteristics of fraudulent transactions through payment market infrastructures-the systems owned by central banks that allow for safe open payments-will help banks and payment service providers combat counterparty fraud and better protect end customers.
Here are four actions to take for securing RTP transactions across multi-network ecosystems.
Securely managing instant payments across multiple networks takes hypervigilance and collaboration. But in an increasingly real-time world, it's a must-do for banks and payment service providers.
For more on real-time payment fraud, read our white paper, "A Perspective on Fraud: Resilient Real-Time Payment Hubs with Multiple Clearings."
Senior Director, Head of Payments, Risk & Compliance
\r\n"}}">Senior Director, Head of Payments, Risk & Compliance
Krish has over 21 years of diverse experience in driving payment transformation initiatives for globally renowned clients. Krish is a functional SME on multiple payment hub solutions, including Finastra GPP and ACI MTS; ACI BASE24-eps; and real-time payment products such as ACI UP/IP and Euronet RTPay. He also has extensive experience with FinTech solutions, including INETCO Insight.
\r\n"}}" id="text-0e14186253" class="cmp-text">Krish has over 21 years of diverse experience in driving payment transformation initiatives for globally renowned clients. Krish is a functional SME on multiple payment hub solutions, including Finastra GPP and ACI MTS; ACI BASE24-eps; and real-time payment products such as ACI UP/IP and Euronet RTPay. He also has extensive experience with FinTech solutions, including INETCO Insight.
Head of Strategy and Partnerships, BFS
\r\n"}}">Head of Strategy and Partnerships, BFS
Manan oversees innovation and solutions development, drives Cognizant BFS's go-to-market partner strategy, and helps clients uncover new business models and streamline their processes and technologies.
\r\n"}}" id="text-ebd3c6ae86" class="cmp-text">Manan oversees innovation and solutions development, drives Cognizant BFS's go-to-market partner strategy, and helps clients uncover new business models and streamline their processes and technologies.