Authorised Push Payment Fraud: The perfect storm that devastates lives
The rise of Faster Payments networks and growing customer expectations of a smooth if not friction-free banking experience is creating the ideal conditions for APP Fraud.
In this new with paper, we present you a new fraud threat based on social engineering scams: Authorized Push Payment fraud (APP fraud). In an Authorised Push Payment scam, a criminal tricks his victims into sending money directly from their bank account to an account controlled by the scammer. In essence, this is a human hack that bypasses the controls and cyber defences put in place by banks and financial institutions. APP fraud is affecting more and more businesses as well as consumers. In the UK, one of the few countries to track this emergent fraud in detail, £354m was lost through APP scams in 2018, a rise of 50% on the previous year. The number of reported cases almost doubled and reached 84,624 in 2018. What about the rest of Europe? Unfortunately, we expect that the same phenomenon will occur with the arrival of Instant Payment because PSD2 (Payment Services Directive 2) encourages the use of digital channels and fast transfers, as a means of replacing cheques, cash and bank cards. This makes payments smoother for consumers, who can transfer payments anywhere in the world in seconds. Progress? Of course, but if we go back to the British experience, we can see that although faster payment methods and online banking offer a better user experience and faster transactions, they also greatly facilitate APP frauds. So, what can be done?
In this whitepaper, you will learn:
- The anatomy of the APP Fraud,
- The drivers and effects of this insidious type of fraud,
- What banks and financial institutions can do to combat it.
Get your white paper here: http://bit.ly/2s93Pe1
About the author
Bleckwen is an award-winning Behavioural Analytics software company, dedicated to help Banks and Financial Institutions to defeat fraud and make a safer world. We take state-of-the-art technologies, applied research, quality engineering and passion to deliver great solutions for our clients.