How inbound payment monitoring can help in the fight against fraud
As fraud complexity and threat levels continue to evolve, fraudsters have adapted their own strategies and techniques so they can continue to win at their game. Now that detection rates are better on attack types like account takeover and malware, fraudsters have shifted their focus to social engineering/authorized push payment (APP) fraud.
Banks are accordingly updating their own internal strategies with initiatives like advanced analytics and machine-built models to detect APP specifically. However, real-time inbound payment monitoring is shaping up to be a compelling fraud prevention tool.
Traditionally, banks have focused detection methods on trying to halt suspicious looking outbound payments—after all, this is what protects their bottom-line fraud loss. But today, more and more banks are considering monitoring the end-to-end journey of a payment and reviewing the beneficiary, not just profiling the account the money is coming from. In doing so, banks can investigate actual, real-time payments that have the potential to be fraudulent.
By embracing the benefits of inbound payment monitoring, the bank essentially gains two opportunities to stop the fraud. If the inbound payment can be effectively identified and held, banks can give the money back to the customer directly, removing the cost of the fraud refund and hitting the fraudster where it hurts by stopping the flow of funds. An added advantage is improved customer experience; a bank that can inform a customer that a fraudulent attempt against them was detected and prevented will often be perceived in a positive light.
In an era when fraud incidents are spiraling higher and becoming more sophisticated each day, inbound payment monitoring can help banks seize a leadership role at the forefront of fraud deterrence. Learn more about inbound payment monitoring in our white paper: Monitoring outbound payments shows only one cog of the fraud network.