Instant Banking Payments Without Instant Fraud | BAE Systems | Cyber Security & Intelligence

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Instant Banking Payments - Without Instant Fraud

It is vital that fraudulent activity is flagged and acted on as close to the payment initiation as possible. Consequently, we are witnessing an infrastructure modernisation wave around the globe.
Instant Banking Payments Without Instant FraudMobile banking is rapidly on the rise, with 47% of all users reporting that they used it to pay for a product or service within the past month. Consumers are now completing transactions with a simple tap of a phone and transferring money across accounts within a matter of seconds. In a banking world that is moving faster than it ever has – and accelerating all the time – this is opening up a whole host of opportunities for cyber criminals.
 
As the thirst for instant payment options grows, financial institutions are faced with the daunting task of preventing fraud just as fast, to protect their customers and assets. The scale of the challenge speaks for itself, with more than $400 trillion in non-cash payments handled by global banks in 2015 alone, according to the Boston Consulting Group's 2015 Global Payments Report. Most fraud monitoring tools are specifically equipped to handle processing within days.
 
While consumers seek instant, more secure payments and access to funds, many of the existing payment channels were designed before consumer internet and remote banking – which allowed for the spike in fraud associated with payments. With an ever shrinking window until funds are completely settled, both financial institutions and their customers are at high risk. Should a fraudulent charge go unnoticed, there is but a slight chance of recovery once a payment is released from an originating financial institution.
 
Now, talking with execs rolling out new payment initiatives, they recognise that they have an obligation to build in better security, given what we all know today. Not only will this protect customers from having their money stolen, but also ensure the integrity and trust in the new payment  network that they are offering.
 
To protect and retain customers therefore, financial institutions have but one way forward: to detect and stop fraudulent electronic payments in real time. It is vital that fraudulent activity is flagged and acted on as close to the payment initiation as possible. Consequently, we are witnessing an infrastructure modernisation wave around the globe.
 
To meet that burgeoning demand, BAE Systems provides real-time payment solutions for both payment providers and processers. NetReveal Payments Fraud enables holistic protection against account takeover for cross-channel payments, combining both monetary and non-monetary activity to automate interdiction, blocking fraudulent payments in real time. This significantly increases accuracy, and minimises any impact on institutions and their customers.
 
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Carl Ottman, Product Manager, Financial Crime March 16, 2017