International Fraud Awareness Week
Around the world, real-time scams are growing with real-time payments. ACI Worldwide is proud to support International Fraud Awareness Week and the goal of educating and spreading awareness of global fraud schemes and their impacts.
The Banking Industry Needs a United Front Against Fraud
Banks Must Get Ahead of Regulatory Changes
To minimize disruption and costs, banks should demonstrate a proactive attitude to strengthening and optimizing both processes and technologies in the fight against APP scams.
Behavioral Data Is Key To Tackling Social Engineering
Behavioral data must be used to drive AI and machine learning-enabled profiling of both positive and negative transactional behavior.
Collaboration Between Both Ends of the Transaction
Banks must collaborate more closely using a network of intelligence based on the sharing of fraud signals in metadata format and in real time to drive automated decision making.
Around the World, APP Scams Are Growing With Real-Time Payments
APP scams are on the rise — and rising rapidly. Losses are expected to record an average compound annual growth rate (CAGR) of 21% from 2021 to 2026 across the U.K., U.S., India and reach a total of $5.2 billion.
“Revenue growth from real-time payments is expected to outpace APP scam losses in our three focus markets — yet something potentially more valuable is on the line.”
Lead Analyst (Payments), GlobalData
“Without mule accounts there would be little to no APP scams. Shutting off the supply demands better collaboration and data sharing between banks.”
Head of Fraud Management for Banking, ACI Worldwide
“Better understanding of the behaviors of both fraudsters and customers is the key to making APP scams easier to spot.”
Senior Fraud Consultant, ACI Worldwide
APP Scam Losses Are on the Rise
The lack of regulatory protections around reimbursing customers for APP scam losses means there is also a high potential for loss of trust in real-time payment, posing a serious risk to revenue growth beyond the immediate monetary cost of fraud.
Loss of Trust Is Already Undermining Banks’ Revenue
The vast majority of consumers that fall victim to APP scams reported closing their account, illustrating the reputational and financial risks of APP scams to banks.