Faster Payments: Effective Fraud Mitigation Strategies
Bank Info Security
The Faster Payments Task Force is working toward launching a real-time payments network in the U.S. by 2020. But faster payments could open the door to more fraud, as has been experienced in other countries, such as the U.K. and Mexico.
Meanwhile, the U.S. has already experienced fraud exploits on a number of P2P payments networks, including Venmo and Zelle, that offer money transfers between consumers. Those exploits focus on the lack of scrutiny that faster payment transactions receive due to the speed of funds transfers.
To minimize fraud risks as payments get faster, security experts are advising that strong authentication, customer education and scalable fraud solutions will all prove essential.
Due to high-profile advertising and the embedding of Zelle directly into many mobile banking apps, the P2P payments network has quickly gained popularity, reportedly moving a total of $75 million in 2017, more than twice that of its close competitor, Venmo.