Fraudio

🚀 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

Some people have a thing with the camera 📸 😉 Looking good, Maarten Bleijerveld and Gadi Erel!

🚨 Authorised Push Payment Fraud: New UK Reimbursement Requirements 🚨 The UK Payment Systems Regulator (PSR) has unveiled new reimbursement requirements for #APP fraud victims. Julie Baker FCII and Joanna Carruthers of WTW did a great job at exploring the new requirements. Here is a recap: • Effective date: October 7, 2024 📅 • Maximum reimbursement: £415,000 per claim 💷 • Applies to: In-scope PSPs participating in Faster Payments 🏦 Who's responsible? 🤔 The sending PSP will typically reimburse victims, with costs split 50/50 between sending and receiving PSPs. This shared responsibility model incentivises fraud prevention across the entire payment chain. Consumer Protection vs. Responsibility 🛡️ While the new rules offer stronger protection, consumers aren't off the hook entirely. To be eligible for reimbursement, they must meet a "standard of caution." 1. Heed clear fraud warnings 🚫 2. Report promptly (within 13 months max) ⏱️ 3. Share relevant information with PSPs 📝 4. File a police report (or consent to PSP doing so) 👮 Remember, these standards don't apply to vulnerable individuals, offering extra protection for those who need it most. The AI Wild Card 🃏 With the rise of #AI, we can anticipate even more sophisticated #fraud attempts. #PSPs and insurers alike need to stay ahead of the curve. Takeaways for PSPs 📌 • Implement robust fraud prevention measures • Consider adopting Confirmation of Payee (CoP) if not already in place • Review insurance coverage in light of these new requirements Full article here: https://lnkd.in/dNXZGzRq

🚨 Fraud Alert: UK Banking Transactions at Risk 📈 The latest study from Juniper Research reveals a shocking forecast for the UK financial sector. By 2029, fraudulent #banking and money transfer #transactions will skyrocket by 111%, reaching a staggering 8.8 million cases 😱 🔑 Key Findings: • Current fraudulent transactions (2024): 4.2 million • Projected fraudulent transactions (2029): 8.8 million • Increase: 111% over 5 years The APP Fraud Challenge 🏦 Authorised Push Payment (#APP) fraud is rising, with criminals tricking victims into willingly making large bank transfers. The UK Payment Systems Regulator is stepping in with new reimbursement regulations, but concerns about potential slowdowns in faster payments are mounting 💸 AI to the Rescue 🦸♀️ Implementing AI-based real-time Fraud Detection & Prevention (FDP) solutions is crucial to combat this growing threat without compromising the speed of transactions. Benefits of AI in FDP: • Quick identification of APP fraud • Maintenance of faster payment value • Enhanced real-time fraud detection Cara Malone - Senior Research Analyst, the report's author, emphasizes the importance of data sharing: "The plethora of data collected throughout the payments processes will be utilised to develop several different FDP tools, ranging from behavioural biometrics to identification." 🔑 Takeaways for Financial Institutions: 🎯 Invest in AI-powered FDP solutions 🎯Prioritize data sharing among stakeholders 🎯Develop diverse FDP tools using collected data 🎯Balance fraud prevention with transaction speed As financial fraud evolves, so must our defences. Are you ready to embrace #AI and #data sharing to protect your customers and #business? 🛡️ Link to the study: https://lnkd.in/dJcZ3Zft

🛡️ Social engineering scams 🛡️ Social engineering scams are on the rise, with U.S. consumers losing $10 billion to fraud in 2023 alone. This represents a $1 billion increase from the previous year, highlighting the urgent need for awareness and protection. In a recent Mastercard article, Dianna Delling does an excellent job identifying and explaining the threat. The Human Element: Our Greatest Vulnerability 🧠 Cybercriminals exploit human emotions to bypass even the most advanced security systems. As Donna M., principal of corporate security education and awareness for Mastercard, explains: "Cybercriminals often rely on human emotion like fear, curiosity, sympathy or pride to trick their victims into falling for a con." Types of Social Engineering Scams to Watch Out For 🕵️♀️ Phishing 🎣 Fraudulent emails are designed to lure recipients into sending money or disclosing confidential information. Warning signs: messages that inspire fear, panic, or push for immediate action. Spear Phishing 🎯 A targeted, personalized form of phishing. Scammers use research to address you by name or claim to represent someone you know. Whaling 🐳 Targeted phishing attacks aimed at corporate executives or high-ranking individuals. Vishing 📞 Phone-based phishing attacks using calls or voicemail messages. Smishing 📱 SMS-based phishing attacks target victims via text messaging. Quishing 📷 Scammers use fake QR codes to direct victims to malicious websites. Zishing 🎥 Phishing attacks on videoconferencing platforms using deep fake technology. Protecting Yourself: Key Takeaways 🛠️ 1️⃣ Be sceptical of urgent requests or threats 2️⃣ Verify sender identities independently 3️⃣ Don't click on suspicious links or download unknown attachments 4️⃣ Use strong, unique passwords for each account 5️⃣ Enable two-factor authentication when possible 6️⃣ Keep software and security systems up-to-date 7️⃣ Educate yourself and your team about the latest scams Stay informed and vigilant is your best defence against social engineering attacks. Share this post to help others protect themselves from cyber threats 💪 Read the full article here: https://lnkd.in/e8pYS9Q5