Faster Payments is quickly becoming a reality in the U.S. for multiple use cases, ranging from person-to-person (P2P), to corporate disbursements (B2C), and much larger B2B transactions. While the transition to Faster Payments is a positive development for both businesses and consumers, it carries significant and hidden risks. As the speed of payments accelerates, fraudsters are rapidly developing new, increasingly sophisticated fraud tactics that are effective at targeting the most susceptible areas of faster payments.
Customers have become accustomed to an Amazon-like user experience and demand fast, frictionless enrollment without delays in processing, but this poses a challenge to providers battling rising instances of account takeover (ATO) and new account application fraud. Often, these fraud attempts are successful and go unnoticed by providers who are unaware of the use of synthetic identities by fraudsters as a tool to perpetrate these types of fraud. They continue to rely on legacy, disconnected systems that are unable to prevent new and evolving types of fraud exposing their organizations and their customers to heightened levels of risk.