Outseer, one of the leading providers of digital fraud prevention and customer authentication solutions, announced the availability of new global research conducted by the Aite-Novarica Group focused on global trends in real-time payments (RTP) and associated fraud.
What were the findings of the survey?
Aite-Novarica Group report, sponsored by Outseer, surveyed fraud executives at financial institutions 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. Aite-Novarica Group augmented these efforts by examining the progression of faster payments in each market.
The study found that 71% of financial institutions (FIs) indicated an increase in consumer account takeover (ATO) using RTP rails from 2021-22, and 62% of financial institutions said that consumer authorized push payment (APP) fraud via RTP rails had increased in the same period. 57% of FIs indicated mule account activity over RTP rails was up in 2022 vs. 2021.
Additional insights and recommendations include:
- Financial institutions must evolve their control frameworks to handle the rising tide of industrialized ATO attacks and APP fraud and scams.
- 67% of FIs plan to make major changes to enhance their RTP fraud controls over the next one to two years. RTP fraud mitigation is a key priority in financial institutions’ fraud prevention strategy.
- Mule account detection is key to mitigating RTP fraud both on the sender and receiving account. Profiling the sender and receiving account and cross-checking fraud signals against a fraud data consortium should be part of every RTP fraud mitigation strategy.
What do the findings mean for the industry?
Commenting on the latest research findings, John Filby, Chief Executive Officer at Outseer, said “A layered approach for fraud mitigation that combines authentication and payment fraud prevention is more important than ever to effectively mitigate RTP fraud.”
Learn how Outseer can help your firm mitigate RTP fraud by getting a copy of the report, Faster Payments, Faster Fraud, or register for the June 6th webinar with Julie Conroy, Aite-Novarica Group’s Head of Risk Insights and Advisory, and Scott Olson, CMO of Outseer.