In the dynamic realm of global payments, where efficiency, security, and customer satisfaction are paramount, the battle against fraud is a pivotal challenge.
UK Finance reported fraud losses reaching £580 million in the first half of 2023. It is crucial for payment professionals to have a deep understanding of the evolving fraud landscape, including the growing threat of authorised push payments fraud.
To achieve the objective of improved operational efficiency, cost reductions, and surpassing customer expectations it is vital to have fraud prevention front and centre. The synergy among these objectives underscores the interconnectedness of effective fraud mitigation strategies. By implementing robust fraud solutions, businesses streamline operations and mitigate the risk of false positives, bolstering efficiency and reducing operational costs.
Let us not forget that the imperative to exceed customer expectations directly corresponds to any organisation’s fraud prevention efforts. Reducing fraudulent activities translates to heightened customer satisfaction, fostering trust and loyalty, while attracting new clientele and minimising attrition rates.
Laying the foundations
In the era of real-time payments, speed is of the essence. But accelerating payment processes must align with efforts to combat fraud. Pre-verification and sanction screening emerge as critical components, ensuring the integrity of instant payment mandates.
Bottomline’s Omri Kletter
Transparency and cash visibility are indispensable facets of fraud prevention. Leveraging data-rich standards, like ISO 20022, empowers fraud departments to discern anomalies and detect potential fraud patterns with greater precision.
Scalability and innovation form the bedrock of future-proofed fraud prevention strategies. By harnessing advanced technologies for analytics and risk management, organisations can swiftly identify emerging fraud patterns and adapt to evolving threats. Nevertheless, the human element remains indispensable, augmenting technological solutions with nuanced expertise.
Adherence to regulatory mandates and global compliance standards is non-negotiable. The imperative to combat nefarious actors necessitates the sharing of best practices and the adoption of industry-wide mandates such as Confirmation of Payee and Verification of Payee.
Achieving interoperability on a global scale underscores the importance of standardised fraud prevention practices. Arguably, strong customer authentication within Open Banking should reduce fraud. However, lacklustre adoption driven by the lack of standardised APIs has curtailed progress. Effective communication across the payment ecosystem hinges upon universal adherence to best practices and global standards.
In partnership with Bottomline, organisations from corporates to financial institutions benefit from comprehensive fraud expertise across the payment ecosystem – from sanction screening to secure payments and Confirmation of Payee – which allows them to proactively mitigate risks, uphold regulatory compliance, and safeguard financial integrity.
As the global landscape continues to evolve, payment professionals must remain vigilant, adapting their strategies to confront emerging threats and uphold the integrity
of the payment ecosystem. By embracing a multifaceted approach to fraud prevention, organisations can navigate the complex terrain of global payments with resilience and confidence.
Omri Kletter is global vice president, product and strategy – risk solutions at Bottomline
This article was first published in ‘Rising to the fraud challenge 2024’, an Open Banking Expo report in association with Bottomline. Download your copy of the report here.
