The number of scams continues to rise and widespread losses suffered by victims are prompting new reimbursement rules to protect consumers. Challenges include increasing authorized push payment (APP) fraud and increasing customer expectations to be protected. UK regulators are paving the way by mandating that all APP fraud victims receive compensation from October 2024.
As the legislation is finalized, banks will need to work cross-functionally across their organization to ensure their fraud prevention processes are working well for them. For example, fraud signal orchestration and consumer intervention processes need to be as streamlined as possible. There is also a need to identify and mitigate mules and identify the risk of fraud in incoming payments.
When it comes to customer intervention and consumers are used to quick payment methods, false positives can negatively impact customer service when transactions cannot be completed, leading to frustration with their bank.
As with addressing new threats, new technologies must also be considered, and in 2024 the most savvy banks are recognizing more than ever the importance of both predictive and generative AI.
The benefits of predictive AI in combating fraud are numerous and well-known. New models can profile emerging threats such as authorized fraud and mules. Additionally, generative AI is now also playing a prominent role in enabling banks to provide personalized alerts and tailor consumer conversations based on contextual interactions.
Register for this Finextra webinar hosted in collaboration with outsiderto join our panel of industry experts who will discuss why data-driven approaches are needed to detect and mitigate threats.
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