Security News > 2020 > January > More authentication and identity tech needed with fraud expected to increase

The proliferation of real-time payments platforms, including person-to-person transfers and mobile payment platforms across Asia Pacific, has increased fraud losses for the majority of banks.

"While the convenience of real-time payments is great news for customers, increasingly, banks have zero time to clear a transaction or payment. AI can't slow down the clock, but it can help create systems that are radically quicker to recognize a transaction that smells likely to be fraudulent," said Dan McConaghy, president of FICO in Asia Pacific.

The survey bore this out with 40 percent of banks naming social engineering as the number one fraud concern when it comes to real-time payments.

Further to stopping fraud in real-time payment platforms, crimes such as drug trafficking, human smuggling, tax evasion and terrorism finance are also attracted to the irrevocable nature of instant payments.

In terms of mitigating this criminal behavior, more than 90 percent of APAC banks surveyed thought that convergence between their fraud and compliance functions would be helpful in defending transactions on real-time payments platforms.

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