As payments move faster or in real-time, preventing fraud has to change its approach. With faster and real-time the game changes quite a lot, said Sarah Grotta, director, debit and alternative products at Mercator Advisory Group.
“You aren’t catching the transaction itself because it is moving too quickly, so it is more about identification and authentication.”
Mercator has released a report on fraud and faster payments that covers authorized push payment fraud, account takeover fraud, money mule fraud and account opening fraud.
When the UK introduced faster payments a little more than 10 years ago, it saw a spike in fraud. American banks are seeking not to repeat that experience. Modern technologies can help, Grotta said.