Financial services firms must evolve their control frameworks to handle the rising tide of industrialized ATO attacks and APP fraud
May 10, 2023 (BOSTON) — Faster payments have emerged country by country over the past two decades in a patchwork manner. Fraudsters prefer this piecemeal approach to faster payments since various networks are easier to attack individually, compared to a unified approach that could leverage collective network intelligence and fraud-mitigation technologies.
In Faster Payments, Faster Fraud: Solutions to Stop the Madness—a new report sponsored by Outseer—research and advisory firm Aite-Novarica Group surveyed fraud executives at large financial institutions (FIs) in February and March 2023 in Brazil, Canada, India, the U.K., and the U.S. to understand the trends associated with fraud on faster payment rails. Sixty-two percent of financial institutions (FIs) said that consumer authorized push payment (APP) fraud via real-time payment rails had increased from 2021 to 2022, and 71% of FIs noted a similar increase in consumer account takeover (ATO) using real-time payment rails.
“Faster payments are here to stay,” said Julie Conroy, Head of Risk Insights & Advisory at Aite-Novarica Group and co-author of the new report. “Consumer education alone is insufficient to control and lower APP fraud losses. Financial services firms must understand the various types of commercial fraud solutions and which ones are best suited for and complement their existing framework.”
A preview of the report is available online, and desk copies are available to qualified media. Please contact [email protected] or call Kaitlyn Labbe at +1.857.327.9442 for more information.
About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on LinkedIn.
Press Contact:
Kaitlyn Labbe
Public Relations
+1.857.327.9442
[email protected]