Outsmarting Criminals on the Widening Road to Faster Payments
Driven by extreme volatility, demand for faster payments increased in 2020. This growth reflects the demand and necessity for convenience and quickness in the U.S. financial system, as does the continued adoption of real time payments. With increases in use of Same Day ACH, The Clearing House's RTP® network and the launch of the Federal Reserve's FedNow Service as early as 2023, real time payments ubiquity in the U.S. could be achieved by 2025. This opens up a world of possibilities, however it could also bring a more sophisticated level of financial crime as cyber criminals attempt to keep up with these enhancements. During the pandemic, we saw this in the surge of new scams, account takeover and identity fraud. We can't predict the next wave of attacks, but we can make sure we're prepared by using real-time risk decisioning at the enterprise level to detect criminals and prevent them from exploiting our evolving payments system and sabotaging what should be a frictionless customer experience.
Questions answered during this session:
1. How can data and machine learning be used to detect and stop fraud without impeding the customer experience of faster payments?
2. Any time big data is mentioned, privacy is always a concern. How do these methods ensure that consumer data is protected and used responsibly?