Scammers are cunning and determined, moving in groups and looking for weaknesses.
The best defense may be a collaborative approach. It’s an approach where CFOs and their financial providers (which also include banks and fintech companies) share their most valuable resource for building defenses against bad actors: their data.
According to data from PYMNTS Intelligence, approximately one-third of Big Tech and FinTech companies have experienced fraud in recent months. And as we discovered together, Hawk AIabout 43% of financial institutions In the United States, fraud increased this year compared to 2022, resulting in fraud losses increasing by approximately 65% from $2.3 million in 2022 to $3.8 million in 2023.
Faster Payments Council News Released at the end of last month, noted an increase in authorized payment fraud, where authorized parties or account holders are manipulated into sending payments, including faster payments, to fraudsters.
PYMNTS Intelligence found that mid-teens of approved payment frauds occur due to relationship or trust-based fraud. For example, a scammer could impersonate her as an IRS employee or pretend to be the account holder.
Data shows that one-third of financial institutions that are not using advanced technologies such as machine learning and AI are facing an increase in fraud. However, there are some encouraging findings within this, with the PYMNTS survey showing that 47% and 42% of financial institutions are concerned about cloud-based fraud and payment processor-provided financial platforms and financial risk scores, respectively. It is said that it depends on
Data sharing via platform
The aforementioned financial risk score depends on several aspects, including the person sending the money, the behavioral aspects of the person receiving the money, and the relationship between the sender and receiver. Elsewhere, in an interview with PYMNTS, he said: nick fleetwoodHead of Data Services form 3,said.cooperation network” facilitates data sharing that can identify fraudulent activity in real time based on behavior and other characteristics.
and jeff gipsonDirector of Payment Products Management Discover® Global Networktold PYMNTS that the platform can: Collect and integrate data — Every time an individual logs into a merchant’s website or app, does the platform need to introduce authentication and other frictions into the mix of IP address, email address, and context around the individual’s behavior and payment flow? Collect information about other data that provides context about whether .
PYMNTS discovered that 63% of CFOs Our research shows that over the past six months, we have used some degree of specialized automation to prevent fraud. There is growing recognition of the value of using technology to fight fraudsters. Since the dark days of the pandemic, as reported heredisruption, and the shift to digital channels as the primary way of doing business has led 56% of businesses to invest in more robust fraud protection.
