Payments Fraud

Foiling Fraud in a World of Instant Payments

Amidst the ever-evolving landscape of instant and account-to-account payments, what's the key to reducing fraud on a global scale?

Foiling Fraud


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Reducing Payment Fraud on a Global Scale

Payments Fraud
In this electronic world of instant gratification, consumers and businesses have more ways than ever to exchange money for products and services with just the click of a button. Advanced technology and the move to open banking have laid the groundwork for instant and account-to-account (A2A) payments, with all the accompanying risks and benefits these real-time transactions bring.

The Rise of Instant Payments and Authorized Push Payments (APP) Fraud

Global A2A transaction value exceeded $525 billion in 2022.1 Consumers appreciate the ease and speed of a direct transaction and companies benefit from the inherent cost advantages, but behind the scenes, organizations must find ways to combat the growing threat of bad actors trying to defraud users and exploit security gaps.

“It’s not just about pounds and pence. Companies need to be hypervigilant about managing customer experience by controlling fraud, which has become more challenging as cybercriminals increasingly take aim.”

- Ed Metzger, Vice President of Payments Efficiency at LexisNexis® Risk Solutions

The real-time nature of instant and A2A transactions and difficulty reversing them present an attractive target for fraudsters. In fact, 20% of consumers worldwide have been victims of payments fraud and 27% of those were victims of APP fraud.Scammers are targeting corporations as well by using false invoices as a trojan horse to gain entry to in-house payments systems.

Making Life Harder for Fraudsters

Fraud is not going away. Companies need to stay alert and take steps to protect themselves and their customers from becoming victims. With 41% of identity related fraud taking place in the payments process3, companies that address this issue aggressively are most likely to thrive – gaining operational efficiency, better liquidity management, and the ongoing trust of a loyal customer base.

Data Driven Verification Tools Give Companies an Edge

The gold standard in reducing fraud risk is the ability to identify the owner of the payee account before initiating payment. Most high-value frauds happen internationally, so organizations should look for solutions that feature timely and accurate access to global data.

The combination of technology and data intelligence will not only help organizations address fraud, but can also reduce operational errors which in turn, promotes better liquidity management and positive customer experience.

Here at LexisNexis® Risk Solutions we have gone beyond the traditional domestically focused tools to offer international solutions that bring their substantial global data capabilities to bear. Whether you are looking for solutions that enable common APIs for Verification of Payee, Confirmation of Payee or cross-border account verifications, LexisNexis® Bankers Almanac® Validate™ delivers safe, seamless and one-stop account-level confirmation on a global scale.

In case you missed it, make sure to watch our recent interview with Finextra TV, where we discuss the Top 5 Payments Trends to Watch this year!

  1. -2023-mckinsey-global-payments-report

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