Authorized push payment (APP) fraud, identity theft, synthetic account fraud and first-party misuse are all growing problems for many industries and countries. In the United Kingdom, financial loss from APP scams, which involve fraudsters deceiving individuals into sending payments to bank accounts that the fraudsters control, increased 39% year over year in 2021. For the first time, APP overtook credit card fraud in terms of the most money stolen, with cases skyrocketing 71% through the first half of last year.
Fraud using stolen identities to open new bank accounts grew by 64% in 2021. Synthetic account fraud, a newer form of identity fraud in which bad actors open accounts using a combination of stolen and fabricated identities — such as an actual Social Security number under a fake name — represents one of the fastest-growing financial crimes in the United States. First-party misuse, such as credit card chargebacks, can plague merchants with lost revenue. PYMNTS research found that 50% of merchants say costs incurred from chargebacks are the biggest problem they face.
Digital Authentication Solutions Aim to Deliver Trust, Reliability
Digital authentication technology is crucial in the fight against fraud, especially for APP and synthetic identity fraud. PYMNTS research found that acquiring banks are especially interested in artificial intelligence (AI), with 60% saying that AI is their most important technology for detecting fraudulent transactions….
