Push Payments Fraud Next Battleground

Use of real-time payments is one of the most dangerous trends in fraud, including so-called authorized push payment fraud. Criminals trick consumers into authorizing a payment of a fake invoice or unwittingly sending an SMS that triggers a payment.

“Criminals are constantly looking for new ways to commit fraud, lately real-time payments fraud are increasing. One important advice is to always think-twice if payments are related to something you have engaged in,” says Yannick Leclerc, Head of Fraud Strategy & Analytics with EnterCard.

Liability for these losses is still being determined, but the National Board for Customer Disputes in Sweden, after reviewing cases referred to them, have ruled that banks should be liable for push payment fraud losses over a certain amount.

Push payment fraud includes:

• Unauthorized push-payment transactions are not authorized by the account holder; instead, they are carried out by a fraudster using compromised account authentication details given to them by the true account holder.
• Authorized push-payment scams manipulate the account holder into making the payment to an account controlled by fraudster. This is a form of social engineering.

EnterCard and FICO have been watching this trend globally and using a new wave of analytics to protect Scandinavian consumers. EnterCard uses a wide range of analytic innovations from FICO to detect push payment fraud.

Since 2013, EnterCard has taken the lead in its use of the latest analytic innovations from FICO. Thanks to new security solutions EnterCard expose more than 8 out of 10 fraud attempts, even before the customer has discovered the fraud. Furthermore, more than 70 per cent of our customers reply to EnterCard’s messages asking them to confirm whether the transaction is genuine/fraud.