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🌐 McKinsey Global Payments Report 2024: Key Insights The latest McKinsey Global Payments Report is out and packed with valuable insights for payments professionals. Here are the key takeaways. 📈 Industry Growth • Global payments revenues reached $2.4 trillion in 2023, an all-time high • Projected 5% annual growth to reach $3.1 trillion by 2028 • Asia-Pacific and EMEA regions driving two-thirds of revenue growth 🔑 Six Key Trends Shaping the Industry 1️⃣ Continued decline of cash (unevenly across regions) 2️⃣ Rapid growth of instant payments 3️⃣ Increasing adoption of digital public infrastructures 4️⃣ Rise of intermediaries taking market share from incumbents 5️⃣ Transaction banking mimicking consumer experiences 6️⃣ Central Bank Digital Currencies (CBDCs) setting a baseline for digital currencies 💡 Areas for Investment and Innovation • Instant payments offerings in high-margin segments • Improved anti-money laundering (AML) and fraud prevention systems • Infrastructure upgrades to handle high volumes reliably 🚨 Rising Fraud Concerns • Online payment fraud is growing twice as fast as transaction volume • Global losses from payment card fraud are projected to reach $400 billion over the next decade • Authorized push payment fraud expected to grow 11% annually from 2023 to 2027 🛡️ Implications for Fraud Prevention • Increasing regulatory pressure on financial institutions to protect consumers • Need for real-time or near-real-time fraud detection and prevention systems • Investment in advanced technologies like AI for more accurate fraud detection At Fraudio, we're committed to helping payment companies navigate these challenges and opportunities. Our AI-powered fraud prevention solutions are designed to meet the evolving needs of the industry, ensuring robust protection while maintaining seamless user experiences. What are your thoughts on these trends? How is your organisation preparing for future payments? Let's discuss this in the comments below! #Payments #FinTech #FraudPrevention #McKinseyReport

🌟 Money20/20 and the AI Revolution in Finance 🌟 With the Money20/20 Las Vegas 2024 in full gear, we at Fraudio can't help but feel the buzz of innovation in the air. The spotlight on #AI in #banking and #fintech is a topic close to our hearts! Money20/20 is positioning itself as the #1 show for GenAI in Banking and Fintech, and for good reason. This event is set to be a melting pot of ideas, bringing together the most influential brands and leaders in the industry. It's exciting to see how AI is reshaping finance, from #fraud detection to personalized banking experiences. Star-Studded Speaker Lineup 🎤 The speaker list is nothing short of impressive: • Sarah Friar, CFO of OpenAI • Daniela Amodei, President of Anthropic • Gary D. Cohn, Vice Chairman of IBM • Malcolm deMayo, Global VP Financial Services Industry at NVIDIA These thought leaders will be sharing insights that could shape the future of fintech. We're particularly keen to hear about advancements in AI-powered fraud detection and risk management – areas where Fraudio is constantly innovating. Hot Topics on the Agenda 🔥 Some sessions that caught our eye: • From Hype to Reality: GenAI in Banking and Fintech" (powered by NVIDIA & Oracle) • Is AI-powered personalization the new standard for relationship banking? • Unleashing Innovation Through the Intersection of Data, Fraud, and AI Solutions These topics resonate deeply with our mission at Fraudio. We're always exploring how AI can enhance fraud detection and prevention in the financial sector. The AI Revolution in Financial Services 🚀 Money20/20 is also launching a benchmark report on "The AI Revolution in Financial Services" during the show so keep an eye out to download and read. Why Events Like This Matter 💡 Events like Money20/20 are crucial for driving innovation in our industry. They provide a platform for: • Accelerating deals and partnerships • Raising profiles and credibility • Making breakthroughs in technology and AI Looking Forward 🔮 As the financial world continues to evolve with AI at its core, we're excited to see what groundbreaking ideas and partnerships will emerge from Money20/20. What are your thoughts on the increasing role of AI in finance? Let's discuss this in the comments below! 👇#Money2020 #AIinFinance #FintechInnovation #FraudPrevention #Fraudio

🚨 Retailers Face $100 Billion Annual Loss from 'Friendly Fraud' A recent report reveals a staggering $100 billion yearly loss for retailers due to 'friendly fraud.' Let's dive into this growing concern and its implications for the industry. 📊 The Numbers According to a survey by Socure, the scale of the problem is significant-35% of Americans have engaged in first-party fraud, while 40% know someone who has. This alarming trend costs merchants $89 billion out of the total $100 billion loss attributed to #friendlyfraud. In April, the MRC | Merchant Risk Council, comprising 600 e-commerce companies, reported that 94% of its members have experienced first-party fraud in the past year. 🤔 What is Friendly Fraud? According to Mastercard, "Friendly fraud, sometimes called chargeback fraud, is when a cardholder identifies a purchase on their transaction statement as fraudulent and disputes it, sparking the chargeback process. In actuality, though, they or someone else in their household may have made the purchase." ❓ What Causes Friendly Fraud? 1️⃣ Transaction confusion—The cardholder doesn’t recognise the purchase when checking their banking statement and believes they were a victim of fraud, so they dispute the charge. 2️⃣ “First-party fraud”— Someone else in the household — an unauthorised user— purchases without letting the cardholder know. This can happen when a household member pays to stream a movie online using the #creditcard on file with the streaming service. 🌐 The Digital Factor Advancements in mobile banking have made it easier for consumers to dispute charges. While this improves customer service, it has also led to increased misuse of the chargeback process. 💼 Impact on Businesses Excessive chargebacks can severely impact merchants, potentially hindering their ability to process credit card transactions or resulting in fines. This highlights the need for better #fraud detection and prevention measures. 🤝 The Way Forward Experts strongly advocate that consumers attempt to resolve issues directly with merchants before initiating disputes. The importance of improving communication and implementing advanced fraud detection systems cannot be overstated for businesses. These are crucial steps in mitigating this growing problem.

Announcing New Clients 🎉 🥂 We’re thrilled to announce that Fraudio is expanding its roster of esteemed clients! We’re proud to welcome VIALET, WEALTHON, Yalamanchili - Payments and Cards, and Cashflows to our growing family of partners. At #Fraudio, we’re committed to providing cutting-edge AI-powered #fraud detection and anti-money laundering solutions for the payments industry. Our team is excited to work closely with these innovative companies to enhance security measures and protect customers’ transactions. This expansion is a testament to the increasing demand for advanced fraud prevention technologies in the rapidly evolving #financial landscape. We look forward to supporting our new clients in their mission to deliver secure and seamless #payment experiences. To our new partners: welcome aboard! We’re eager to collaborate and drive the future of secure payments together.

🚀 Mastercard's AI Revolution in Fraud Prevention Mastercard has made a game-changing move by acquiring Recorded Future for $2.65 billion! This global threat intelligence company uses #AI to analyze billions of data points, identifying potential threats across 75 countries. AI-Powered Innovations 🤖 • Faster detection of compromised cards • Cross-referencing breached data with geographical clues • Identifying compromised merchants and platforms Biometrics: The New Frontier 👆👁️ Mastercard's not stopping there! They're leveraging behavioral biometrics to monitor physical interactions and spot unusual behaviors. Plus, their Payment Passkey Service pilot in India uses tokenized #transactions and #biometric scans for enhanced #security. Industry Impact 💡 This aggressive push into AI-driven cybersecurity signals a new era in fraud prevention. We can expect: 👉 Increased pressure on competitors to boost their AI capabilities 👉 Potential partnerships between financial institutions and tech companies 👉 A shift towards more proactive, real-time fraud detection methods The Urgent Need 🚨 The Federal Trade Commission reports that consumers lost over $10 billion to financial fraud in 2023 - the highest ever recorded. With 400,000+ complaints about #creditcard information misuse, it's clear why Mastercard is doubling down on AI. What are your thoughts on this AI-driven approach to #fraud prevention? Is this the future of financial security? Let's discuss👇

📊 Nasdaq Verafin's 2024 Global Financial Crime Report Nasdaq Verafin has released its comprehensive 2024 Global Financial Crime Report, shedding light on the staggering scale of financial crime worldwide. Here's a breakdown of the key findings. 💰 The Scale of Financial Crime In 2023, an estimated $3.1 trillion in illicit funds flowed through the global financial system. This includes $782.9 billion in drug trafficking, $346.7 billion in human trafficking, and $11.5 billion in terrorist financing. Additionally, fraud losses totalled $485.6 billion globally. 👥 Human Impact The report emphasises the human cost behind these numbers, featuring stories from survivors of various financial crimes. These personal accounts underscore the devastating impact of economic crime on individuals and communities. 🏦 Industry Challenges Financial institutions face significant obstacles in combating economic crime. 75% of respondents reported an increased headcount in 2023, yet 47% still needed to cite more resources and technology. Legacy systems and manual processes continue to hinder efficiency. 🔍 Emerging Threats Real-time and faster payment fraud emerged as the top concern among industry professionals. Money mule activity, terrorist financing, and drug trafficking were also highlighted as significant threats. 🤝 Call for Collaboration The report stresses the need for improved collaboration between financial institutions, regulators, and law enforcement. 68% of respondents requested better guidance on typology-specific priorities and private-to-private information sharing. 🚀 Technology as a Solution 71% of institutions increased their technology spending in 2023. AI and machine learning are critical tools for improving anti-financial crime efforts, with 70% planning to increase spending in these areas over the next 1-2 years. You can find the full report below.

Thanks, Akurateco Payment Hub, for this! A truly rewarding experience that, hopefully, brings clarity on how to start and operate a fraud-resistant PSP!

ECB and EBA Publish a Joint Report on Payment Fraud 📑 💳 The European Central Bank and the European Banking Authority (EBA) have recently published a joint report on payment fraud, providing valuable insights into the current landscape of payment fraud in the European Economic Area (EEA). This report is a significant step towards understanding and combating fraud in the financial sector. Let's examine its key findings and takeaways. Levels of payment fraud 📊 The report reveals that the total value of fraudulent transactions across main payment instruments in the EEA amounted to €4.3 billion in 2022 and €2.0 billion in the first half of 2023. 🎯 Total fraud value: €4.3 billion in 2022 and €2.0 billion in the first half of 2023. 🎯 Fraud rates: Card fraud with cards issued in the EEA accounted for 0.031% of the total value and 0.015% of the total card payments. Main fraud types 🚨 The report highlights that credit transfers and card payments accounted for the majority of payment fraud in terms of value and volume. This indicates that fraudsters target high-value transactions and exploit card payment system vulnerabilities. 🎯 Credit transfers: Highest fraud value. 🎯 Card payments: Highest fraud volume. 🎯 E-money transactions: Fraud rates of 0.022% in value and 0.012% in volume. The role of Strong Customer Authentication (SCA) 🔒 The report confirms the positive impact of strong customer authentication (#SCA) requirements introduced under the revised EU Payment Services Directive (#PSD2). SCA-authenticated transactions displayed lower fraud rates than non-SCA transactions, especially for card payments. This reinforces the importance of robust authentication measures in reducing fraud. 🎯 SCA impact: Lower fraud rates for SCA-authenticated transactions. 🎯 Cross-border transactions: Fraud rates for card payments were 10x higher when the counterpart was outside the EEA, where SCA is not legally required. Losses due to fraud 📉 The report also finds that losses stemming from payment #fraud were distributed differently among liability bearers, depending on the instrument or country. Most #cardfraud involves cross-border #transactions, highlighting the need for international cooperation in fraud prevention. 🎯 Cross-border fraud: In the first half of 2023, 71% of total card fraud value involved cross-border transactions. 🎯Liability distribution: Losses varied among liability bearers depending on the payment instrument and country. Read the full report here: https://lnkd.in/eY_KUFrz

📊 Identity Theft and Credit Card Fraud Statistics for 2024 The latest data from the Federal Trade Commission reveals a troubling increase in identity theft cases. With 552,000 cases reported in the first half of 2024 alone, we are on track to surpass the numbers from 2023. This alarming trend underscores the need for heightened vigilance and robust #security measures. Jack Caporal of The Motley Fool does a great job at laying out the state of fraud in 2024, revealing some interesting stats. 💳 Credit Card Fraud: The Leading Type of Identity Theft Credit card fraud remains the most common form of identity theft, with 215,000 cases reported in the first half of 2024. This type of fraud can be divided into two categories: 1️⃣ New account fraud: Thieves use stolen information to open new credit card accounts. 2️⃣ Existing account fraud: Thieves use stolen credit card information from existing accounts. New account fraud accounts for approximately 90% of all #creditcard fraud cases, highlighting the importance of protecting personal information from #data breaches. 🏦 Other Forms of Identity Theft on the Rise While credit card #fraud is the most prevalent, other forms of identity theft are also increasing: 🎯 Loan or lease fraud: Up 20% in the first half of 2024. 🎯 Phone or utilities fraud: Increased by 10%. 🎯 Online shopping and payment account fraud: Jumped by 42%. 🛡️ The Role of Data Breaches Data breaches are a significant contributor to identity theft. In 2023, data compromises surged to 3,205, although the number of individuals impacted decreased. Cybercriminals are becoming more strategic, targeting specific personal information rather than conducting broad attacks. 📊 Demographics and Identity Theft Individuals aged 30 to 39 are the most likely to be victims of identity theft, accounting for 29% of reported cases in the first half of 2024. Interestingly, the youngest and oldest Americans report the fewest cases, possibly due to underreporting or lack of awareness. 🗣️ Expert Insights Shai Cohen, Senior Vice President and Head of Global Fraud Solutions at TransUnion emphasises the importance of staying ahead of fraudsters: "Fraudsters are always evolving their tactics. It's crucial for consumers and businesses to stay informed and proactive in their defence strategies." Read the full article here: https://lnkd.in/dqHVH6u

🔒 Cracking Down on Card Sharks: How AI and Graph Tech Are Revolutionizing Fraud Detection 🕵️♂️ Mastercard AI Garage is taking the fight against online fraud to the next level. Let's dive into how they use cutting-edge technology to outsmart cybercriminals and protect cardholders. The Challenge: Partial Card Numbers, Big Problems 🧩 Fraudsters are crafty, selling stolen card data on illegal websites with only partial information visible. This makes it incredibly difficult to identify compromised cards and prevent future #fraud. The Solution: AI + Graph Technology = Fraud-Fighting Superpower 🦸♀️ Yatin Katyal from Mastercard's AI Garage explains their innovative approach: "We use generative #AI, advanced #algorithms, and graph technology to predict the full 16-digit card numbers of compromised #cards and the likelihood of such cards being used by criminals." This powerful combination allows Mastercard to: 1️⃣ Analyze cards and merchants 2️⃣ Generate risk-based links between them 3️⃣ Continuously update these connections with new data 4️⃣ Produce a list of potentially at-risk cards with usage likelihood The Results: Double the Detection, Faster Protection 📈 Thanks to this groundbreaking algorithm, Mastercard can now: 🌟 Uncover compromised cards before they're used at DOUBLE the previous detection rate 🌟Alert banks more quickly and accurately 🌟Enable faster blocking and reissuing of at-risk cards 🌟Continuously monitor attempted transactions on compromised cards Why it Matters: Staying Ahead of Evolving Threats 🏃♂️💨 Katyal emphasizes the importance of this approach: "By using generative AI, this technology allows us to better protect future transactions against emerging threats than was possible with traditional statistical or machine learning-driven solutions." Read the full article here: https://lnkd.in/ee7-M6zF