Source: Thredd
As the financial landscape evolves, so too do the measures necessary to protect consumers and businesses from fraud.
In October 2024, the UK Payment Systems Regulator (PSR) will implement a significant change in the way losses from authorised push payment (APP) fraud are reimbursed. Under the new rules, the financial burden will be split 50:50 between the victim's bank and the recipient financial institution. This regulation seeks to incentivise all parties involved to enhance their fraud detection and prevention strategies. The Rise of APP Fraud in the UK
"APP fraud losses amounted to £485.2 million in 2022."
APP fraud continues to rise sharply in the UK. According to the latest figures from UK Finance, APP fraud losses amounted to £485.2 million in 2022, with cases continuing to escalate as fraudsters deploy increasingly sophisticated tactics. The PSR’s upcoming change aims to address this growing problem by distributing accountability across the payment chain. For financial institutions, this means increased pressure to adopt more robust, cost-effective fraud prevention methods.
Scam Transaction Monitoring: Out-of-the-Box Protection with Minimal Investment
One of the most pressing challenges banks and payment service providers face is implementing a fraud detection solution that is both effective and efficient. Scam Transaction Monitoring is designed with this in mind. This advanced machine learning model works right out of the box, requiring no historical data to begin safeguarding transactions. By leveraging real-time insights, the system can quickly detect even the most complex scams.
For institutions looking to comply with the new PSR reimbursement rules without heavy upfront investment, Scam Transaction Monitoring offers a seamless solution. It mitigates the need for a lengthy integration process, providing an AI- and Machine Learning-powered scoring system that assesses and flags fraudulent activity as it happens.
Advanced Payment Screening: A Holistic Fraud Detection Approach
Beyond Scam Transaction monitoring, our comprehensive payment screening solution adds an additional layer of security. Utilising artificial intelligence and machine learning, this tool provides an instant fraud score for every transaction, helping detect scams before they result in financial loss. This proactive approach is essential in an era where fraud is growing more difficult to spot, especially as fraudsters target both traditional cards and digital payments.
By combining our suite of fraud solutions, financial institutions can achieve a 360-degree view of customer activity across cards and payments. This not only improves fraud detection capabilities but also enhances decision-making while reducing operational costs (OPEX).
The Future of Fraud Detection and Prevention
As fraud techniques become more sophisticated, regulations like the PSR’s 2024 changes push the financial industry to innovate. By investing in AI-driven models like Scam Transaction Monitoring and comprehensive fraud detection suites, financial institutions can stay ahead of the curve. Ultimately, these solutions provide stronger customer protection while enabling banks to manage new regulatory requirements efficiently.
With the rising threat of APP fraud and increasing regulatory pressure, there has never been a better time to invest in cutting-edge fraud prevention technology. Protect your business and your customers by leveraging the power of AI and machine learning to mitigate fraud risks in real time.
Staying Ahead of Fraud Trends
The upcoming PSR changes underscore the critical need for a robust fraud detection strategy that can adapt to both current and future threats. As fraudsters continue to exploit vulnerabilities in the payment system, it’s crucial to have technology that evolves with these threats. Our solutions are designed to do just that, so get in touch if you'd like to find out more.
