Merchant Acquiring Banks (Acquirers) and Payment Service Providers (PSPs) who are already using machine learning models to prevent fraud are leagues ahead of their rules-only counterparts. But machine learning models are not a set-it-and-forget-it technology. Like all fraud detection and prevention solutions, these models need maintenance. Acquirers and PSPs must modernize their model risk governance frameworks for fraud with machine learning to protect merchants and enable seamless payment experiences. An Expanding Payment Landscape Comes with New Fraud Threats Today’s consumers have a str ..read more

Is there anything more frustrating than learning important information too late? For financial institutions, realizing that a customer’s risk level has dramatically increased since their last periodic review is akin to not checking traffic conditions, leaving for a trip, and getting stuck in traffic. That’s why banks can’t afford to wait to respond to new developments. Feedzai’s perpetual KYC (pKYC) solution helps banks shift away from static, periodic review processes and embrace event-driven reviews instead. The Top 3 Pain Points with Traditional KYC Here are three critical problems with ..read more

When the New Year kicks off, many of us make resolutions focused on self-improvement. This can include resolving to break long-standing habits or pushing ourselves to try new things like learning a new language or joining a gym (for a little while anyway!). For banks, it’s a perfect time to make New Year’s resolutions that improve customer services, break long-standing and outdated practices, and bolster their financial crime-fighting efforts. Here are some New Year’s resolutions for banks designed to improve their operations and reduce fraud losses. Tap Customer Data to Drive Revenue Data ..read more

Several UK banks recently proposed a “polluter pays” approach to online ad fraud that would hold Big Tech firms like Alphabet, Apple, and Meta more accountable for losses originating from their platforms. The proposal comes at a time when scams are rampant, and many victims first encounter fraud through fake ads on social media or telecom providers. However valid the argument, there is a way to go before Big Tech companies will go along with the banks’ proposal. That said, banks can take several steps to clarify their role as intermediaries in online advertising scams and call attention to ..read more

There’s no doubt 2022 was an unprecedented year for sanctions. Let’s reflect on 2022 with a final global sanctions update for the year. Global Sanctions Update 1: Sanctions Grew More Complex It’s not your imagination. Anyone who worked in compliance in 2022, saw firsthand how the nature of sanctions changed for good. With each monthly global sanctions update, compliance teams saw new levels of sanctions in recent memory. This includes the scale of new sanctions instructions, their complexity, reach, and the impact they have on your business. On that last point, frankly, we still don’t know ..read more

Money mules refer to the accounts fraudsters use to receive fraudulent funds. Mules themselves can come in many different shapes and sizes.  Banks Warning Customers About Money Mules For example, there are purpose-opened mules. These are accounts that fraudsters open with the pure intention of using them as money mules.  But there are also unwitting money mules. This is when fraudsters convince once-legitimate customers to allow them to use their account for muling purposes. That customer then becomes a conduit for moving fraudulent funds through the system. Witting mules, on the ..read more

If you’re thinking fraudsters will turn over a new leaf and resolve to behave themselves in 2023, it’s time for a wake-up call. The one prediction we can make with absolute certainty is that things are not going to stay the same; the threat landscape will continue to evolve ever more rapidly in 2023. Fraudsters won’t change their stripes, just their tactics. As we enter a new year, here are the top 2023 fraud predictions we expect to see. 1. More AML Regulations and Sanctions in 2023 There is no crystal ball for fraud and financial crime predictions that can accurately predict how global ev ..read more

Every year, I borrow a lab coat from our Research Team, jump in my Delorean, and travel to the future to bring you a list of predictions about fraud and financial crime trends for the coming year. With 2022 coming to a close, let’s revisit the fraud forecasts we made and see how I fared in fincrime fortunetelling. Prediction 1: ATO Fraud and APP Fraud Grows via Social Engineering Outcome: Right When we first started seeing account takeover fraud (ATO), we saw fraudsters impersonate people via phishing attacks to gain access to their accounts.  Today, fraudsters often don’t bother with ..read more

Every holiday season, consumers worldwide rush to stores, scour websites, and enroll in buy now pay later (BNPL) plans to get last-minute gifts. Meanwhile, fraudsters are doing a different kind of shopping. Thanks to authorized push payment (APP) fraud and scams, fraudsters can quickly profit from the swirl of holiday activity, leaving consumers on the hook for financial losses. Now, a group of Nordic banks is preparing to join a growing group of banks worldwide that will assume liability for fraud and scam losses.  This shift in liability follows a decision by Sweden’s Supreme Court ..read more

Feedzai, the world’s first RiskOps platform, is thrilled to have been named a technology leader in Quadrant Knowledge Solutions’ SPARK Matrix: Behavioral Biometrics, 2022 report. This is the latest in a series of accolades that recognizes our commitment to and expertise in preventing financial crime and putting behavioral biometrics at the forefront of online fraud prevention.  A growing share of financial institutions are implementing behavioral biometrics technology to continuously verify and authenticate customers’ identities at each stage of their online session. With behavioral b ..read more