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🚨 Beware of Digital Payment Scams! 🚨 As the use of digital payment apps like Zelle and Venmo rises, so do the risks of fraud and scams. Consumer Reports highlights the increasing financial losses incurred by consumers on these platforms and the lack of adequate protections. With more than $210 million reported in losses to scams in 2023, it's crucial for consumers to be vigilant when using these apps. Consumer Reports calls for additional protections and improvements, urging payment app providers and regulatory bodies to strengthen safeguards for consumers. Pending legislation aims to enhance protections on P2P platforms, but it's essential for users to take precautions and only transact with trusted individuals. Stay informed, stay safe! #DigitalPayments #ConsumerProtection #FraudPrevention #Edenred

Last year, my team and I conducted a survey with 2,000 UK consumers on the topic of Authorised Push Payment (APP) fraud, commonly known as ‘APP scams’. Astonishingly, we found that: ▪ 1 in 3 UK consumers had fallen victim to an APP scam ▪ 60% of victims are aged between 18-44 ▪ 1 in 3 APP scams go completely unreported ▪ 15% of APP scam victims leave their bank, regardless of whether they were reimbursed This is a topic that impacts so many, and our research shows that anyone can fall victim to APP scams, not just those that are deemed 'vulnerable'. With the advent of AI and deep fake videos / voice calls, fraudsters are only becoming more sophisticated in their methods, so it is critical that there are systems in place to stop these scams happening before victims lose their hard earned money. You can learn more from my colleagues Ramez Hanafi & Marc Corbalan about what Visa are doing to support banks and financial institutions in dealing with APP fraud in the recent ‘Let’s outsmart APP fraud’ webinar, hosted by Payments Cards & Mobile. You can also access 'The Impact of APP Scams’ whitepaper that Fern Pulham and I wrote in the link below. With special thanks to Fern Pulham, Dale Beaton and Andrew Buller at Mintel for their brilliant collaboration in running the research and co-writing the whitepaper. It was a pleasure working with you! https://lnkd.in/g43ngcD9

APP Scams Performance Report - July 2024 Official Link: https://lnkd.in/dVBqyNFH The report on Authorised Push Payment (APP) scams reveals both challenges and progress in the fight against fraud in the #UK. Here are some key takeaways: - Overall Losses Decrease: In 2023, £341 million was lost to APP scams, a 12% reduction from 2022. This indicates a positive trend in scam prevention efforts. - Reimbursement Rates Improve: 67% of reported losses were reimbursed, up from 61% in 2022. The introduction of a new mandatory reimbursement framework in October 2024 is expected to enhance these rates further. - Smaller Firms at Risk: Smaller payment firms are experiencing disproportionately high scam rates, highlighting the need for better security measures across the industry. - Consumer Awareness: The report emphasizes the importance of customer education in identifying fraudulent transactions, which is crucial for reducing scam incidents. - Collaboration Needed: Effective fraud prevention requires cooperation among payment providers, regulators, and consumers to create a safer payment ecosystem. As we move toward the implementation of new policies, ongoing vigilance and #innovation will be key in combating #APP #scams. Thank you Payment Systems Regulator Tony Moroney Sam Boboev Arjun Vir Singh Maximilian Salomon David Jimenez Maireles #fraudprevention #payments #consumerprotection #fintech #appscams

Behind the Scenes of Our APP Fraud Whitepaper Our Cross-Border Working Group, supported by Payall Payment Systems, Inc. has been hard at work on a groundbreaking whitepaper tackling APP fraud in cross-border payments. From identifying the most targeted channels by fraudsters, challenges for our industry, and the implications of the new reimbursement rules, this research dives into the global picture of APP fraud. You can pre-register our whitepaper today and receive it straight to your inbox next week - https://lnkd.in/en2WGbJx #FasterPayments #APPFraud #PaymentsSecurity #CrossBorderPayments #FraudPrevention #Whitepaper Dr Nicola Harding, Gary Palmer, Graham Ridley, Mark McMurtrie, Nicole Bossieux

In 2023, victims in the UK reported 252,626 cases of Authorised Push Payment (APP) scams, losing nearly £341 million. While 67% of these losses were reimbursed, significant disparities still exist among banks. Starting this October, the UK Payment Systems Regulator (PSR) is looking to introduce mandatory reimbursement measures for claims worth up to £415,000 - meaning it's more important than ever for Payment Service Providers (PSPs) to improve APP fraud identification. Prevention is key. By identifying signs of APP fraud before transactions are authorised, Verify offers a proactive solution to protect consumers and reduce financial losses. Talk to our Mobile Intelligence experts about preventing APP fraud: https://lnkd.in/dN8W3jfm #APPFraud #MobileIntelligence #MobileData #SituationalAnalytics

We need to do more to stop APP fraud. Pay by Link has been around for a long time but has seen a resurgence thanks to Open Banking. This is the process where a merchant sends you a payment request in SMS or email. What's wrong with this? SMS and email are insecure channels, you can't tell that the person sending you that request is who they say they are. The fraudsters use big brand names and logos to engender trust. Alarmingly I took this from one Pay by Link provider website whose security includes: "Our emails are configured to originate at the merchant domain, emails are designed to align with merchant branding and the payer is brought to a checkout on the merchant website." This is scary misinformation - don't rely on logo or branding in a message or even that the website looks like the merchant website to tell that the request is genuine. Don't trust texts or emails.

According to figures from industry body UK Finance, APP fraud losses totalled £459.7 million in 2023 This alarming trend has made Authorised Push Payment (APP) fraud one of the most significant financial threats in the country. Where I see some challenges: 👉 Fraudsters often win in APP fraud cases 👉 Upcoming rule changes are pressuring Payment Service Providers (PSPs) to enhance fraud systems 👉 No single solution exists to combat this complex issue In my opinion, while education is crucial, I strongly believe in cross-sector collaboration and real-time fraud intelligence could be a game-changer in flagging suspicious behaviour, however, the key lies in combining the right mix of data, intelligence, and expertise. What innovative approaches have you seen in combatting APP fraud and does cross-sector collaboration to you sound feasible as a multi-layered approach? #APPfraud #paymentfraud #DigitalFraud #fraudprevention

UK Financial Fraud Figures: Director at Appdome on App Fraud's Rise Jack Kerr, Director at Appdome: “Fraud is a rapidly escalating issue in the UK affecting nearly all consumers and businesses, particularly in online and mobile apps, and banks must take urgent action. While freezing suspected fraud transactions for up to 72 hours is a protective measure, it also disrupts essential payments like mortgages, grocery shopping and public transport. All of which can damage customer trust and hurt the British economy.  https://lnkd.in/eYB3Um7v Chris Roeckl Tom Tovar Alan Bavosa Ananya S. Lorena Munevar Naranjo Zoe Gardner #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

🔎 Authorised Push Payment (APP) fraud is a complex challenge that can't be solved by simply finding a loophole, fixing a vulnerability, or adding more authentication layers. When an illegitimate transaction is identical to a real one, and the victim unknowingly consents, preventing it becomes a game of Cluedo. So, who’s able to solve it, and how? As UK banks and Financial Service Providers (FSPs) are legally obliged to reimburse customers, they often bear the responsibility of prevention, despite it originating out of house. Via partnership with third parties, banks often utilise data insights which indicate when a transaction is legitimate or not. This includes monitoring the behaviour of the victim, such as erratic mouse movements or lengthy time spent on certain pages, as well as details about the mobile device being used. Preventing APP fraud isn’t just about technology and data; it requires a comprehensive approach involving industry-wide collaboration, continuous customer education, and adaptive regulatory frameworks. At TMT we can't remove scam adverts on Google, but we can provide Mobile Intelligence to spot signs of APP fraud, reach out to us to set up a trial: https://hubs.li/Q02M8Zzz0 #APPFraud #Banks #FSP #PSP #SocialEngineering #DataInsights #MobileNetworkData #MobileIntelligence

"Stay ahead of Mobile App Cyber Threats and Frauds! Join us for an exclusive Webinar where our Head – Engineering Mohanraj Selvaraj will share strategies to fortify your defenses and protect against SIM Swap Fraud & and Digital Identity Theft. Don't miss out - secure your spot now! 📅 Date: 21st Feb 2024  🕒 Time: 04:00 Pm to 04:45 Pm Register Now: https://lnkd.in/gsPNGTsM #mobileappsecurity #SIMSwapFraud #digitalidentity "