Combatting Authorized Push Payment Fraud

Faster payments allow consumers to make and receive payments instantly, 24/7. These features are also attractive to fraudsters seeking to commit authorized push payment scams. We know social engineering is the root cause of most authorized push payment scams and accountholder education is key.

Along with accountholder education, financial institutions can take a proactive approach to combat APP fraud. The Federal Reserve Bank of Kansas City’s Payments System Research Briefing highlights ways financial institutions can mitigate APP scams, which includes confirmation of payee, transaction scam risk assessment and the use of artificial intelligence and machine learning.

Resource: Federal Reserve Bank of Kansas City, Payments System Research Briefing