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FPC issues global report on mitigating faster payments fraud

Wednesday, December 18, 2024 — 14:41:05 (EST)

Dec. 18, 2024 – The U.S. Faster Payments Council (FPC), a membership organization devoted to advancing safe, easy-to-use faster payments in the United States, today released the latest report from the FPC Fraud Work Group, sponsored by Nasdaq Verafin: International Practices in Mitigating Faster Payments Fraud. The new resource provides an in-depth analysis of global strategies to combat fraud in faster payments, offering valuable insights for enhancing fraud mitigation in the U.S. payments landscape.

This comprehensive report explores anti-fraud practices in leading international markets, including the United Kingdom, Australia, Singapore, and Brazil. It identifies six key strategies for mitigating fraud and compares their application globally while delivering actionable recommendations for stakeholders in the United States.

“Fraud involving faster payments is a growing challenge that requires vigilance and innovation,” said Lee Kyriacou, Chair of the FPC Fraud Work Group. “This new report compares a variety of overseas experiences with faster payment fraud mitigation and can offer lessons for the U.S. payments industry on its faster payments journey."

The report highlights essential fraud mitigation strategies such as enhanced authentication, transaction monitoring, and confirmation of payee practices, as well as the importance of information sharing and consumer protection. By examining these practices, the report identifies opportunities to bolster the security and resilience of the U.S. faster payments infrastructure.

“The FPC is proud to deliver resources that support the industry in addressing fraud effectively and collaboratively,” said FPC Executive Director Reed Luhtanen. “This report serves as both a guide to proven international strategies and a call to action for U.S. stakeholders to adopt innovative approaches that protect consumers, businesses, and financial institutions.”

One of the key takeaways from the report is the emphasis on the importance of collaboration—both pre- and post-transaction. Successful models from other countries demonstrate how intelligence sharing among financial institutions, regulators, and technology providers can significantly enhance fraud prevention. These lessons have the potential to reshape the U.S. payments industry’s approach to mitigating fraud.

“Collaboration and innovation are essential in combating fraud. At Nasdaq Verafin, we are proud to partner with the U.S. Faster Payments Council on their latest report which highlights the growing problem of payments fraud,” said Colin Parsons, Vice President — Head of Fraud Product Strategy at Nasdaq Verafin. “By leveraging global insights and proven strategies, we can enhance the security and resilience of the U.S. payments landscape. We fully support the FPC's efforts and are committed to working together to combat evolving fraud threats."

The International Practices in Mitigating Faster Payments Fraud report is now available for download from the FPC's Faster Payments Knowledge Center.

The FPC prioritizes inclusion of diverse perspectives in tackling complex topics such as interoperability, identifying real-world solutions that can ease adoption of faster payments, managing security risks and fraud threats, addressing barriers to financial inclusion and cross-border payments, and more, as the organization paves the way toward a future of faster payments for all.

For more information on the FPC, its current work efforts or to join, visit FasterPaymentsCouncil.org.

Contact:

Elizabeth Grice U.S. Faster Payments Council 720-737-7368 egrice@fasterpaymentscouncil.org

About the U.S. Faster Payments Council (FPC)

The FPC is an industry-led membership organization whose vision is a world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. By design, the FPC encourages a diverse range of perspectives and is open to all stakeholders in the U.S. payment system. Guided by principles of fairness, inclusiveness, flexibility and transparency, the FPC uses collaborative, problem-solving approaches to resolve the issues that are inhibiting broad faster payments adoption in this country. For more information, please visit FasterPaymentsCouncil.org.

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Source: Company press release.