Account Takeover (ATO) and Authorized Push Payment (APP) fraud attacks are more common in real-time payment systems than in non-real-time payment systems. Fraud growth rates are more dramatic in markets where the adoption of consumer-oriented faster payment systems is driven by central bank policies, compared to markets where adoption is driven by organic market forces. Additionally, while various market forces make each market’s approach to mobilizing faster payment fraud countermeasures unique, a notable similarity is the ironic tendency in many markets to slow down certain aspects of faster payments.
Key insights include:
- Fraudsters prefer faster payment rails.
- Proximity to a liability shift is a potent force shaping the market for fraud controls.
- Mobilization efforts have not yet reached a tipping point in most markets.
- Momentum to modernize, consolidate, and orchestrate payment fraud controls continues to accumulate.
- Consensus is building around certain segments of APP controls.
- Mule activity and inbound payment monitoring are rising priorities.
- Customer interaction and engagement are crucial in the fight against fraud.