Business
APP Scams Emerge as the Top Payments Fraud Threat With Fraudsters Changing Tactics, Finds ACI Worldwide Report
According to ACI's 2023 Prime Time for Real-Time report, the top three fraud tactics in 2022 are Authorized Push Payment (APP) scams, card fraud, and
About this update from Aci Worldwide, Inc.
[{"type":"text","content":"\n\nAccording to ACI's 2023 Prime Time for Real-Time report, the top three fraud tactics in 2022 are Authorized Push Payment (APP) scams, card fraud, and identity theft, with APP scams being the number one fraud tactic.\n\n\n\nFinancial crime and fraud are perennial problems for banks and financial institutions, with the global cost of fraud predicted to be $40.62 billion by 2027.\n\n\n\nDeveloped real-time payment markets are suffering an epidemic of APP scams, but real-time payments can be the most secure payment method.\n\n\n\nBanks and financial institutions can stay ahead of fraudsters and reap the benefit of real-time payments by collaborating and bringing the power of data science and AI.\n\n\n\n MIAMI--(BUSINESS WIRE)--\nOne in every five global consumers surveyed in 2022 said they fell victim to payments fraud in the last four years — 26.9% of whom are victims of Authorized Push Payment (APP) scams, which is the number one fraud threat globally — according to the 2023 Prime Time for Real-Time report published by ACI Worldwide (NASDAQ: ACIW), a global leader in mission-critical, real-time payments software, in partnership with GlobalData, a leading data and analytics company.\n\n\nAPP scams happen when scammers coerce legitimate users to initiate a payment to a destination account under their control. APP scams can take many forms, the most common being social engineering — such as phishing or impersonation scams. Push payments offer rapid settlement and reconciliation for faster payment services and real-time payment systems. While the window of opportunity to catch fraud is shorter, advanced AI capabilities coupled with the rich data that ISO 20022 enables and the signals that the digital channels and devices provide allow for unprecedented precision and speed in detecting and addressing fraudulent activities.\n\n\n\"APP scams are on the rise as fraudsters exploit human vulnerabilities and weaknesses in bank controls to manipulate mule accounts to receive funds from fraudulent activities and facilitate further illicit transactions. Banks need to safeguard their customers and revenue by shifting their focus from relying on traditional measures designed to prevent check or card fraud. They need to arm themselves with the right fraud strategies to capitalize on the security of the real-time payment rails and reap the bene...