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Fraud Risks Rise With Real-Time Payment Adoption
June 2024 by Convera
As real-time payment platforms grow in popularity, financial institutions are facing increased fraud risks according to Convera’s Fintech 2025+ report.
The report by the B2B cross-border payments firm found that mobile fraud incidents rose 61% in 2023, with a quarter of companies surveyed reporting over $1 million in losses related to fraud. Authorized push payment (APP) fraud, where scammers trick victims into approving illegitimate transactions, led to $10 billion in losses last year.
Account takeovers, in which fraudsters gain unauthorized access to accounts, affected 22% of U.S. adults according to the data.
With cross-border payment flows projected to reach $290 trillion by 2030, the report indicates small and medium-sized enterprises (SMEs) are particularly concerned about fraud risks. A Mastercard study cited in the report revealed 41% of SMEs have fraud worries when making cross-border payments.
Traditional fraud detection methods are struggling to keep up as real-time payment volumes grow. Financial firms are turning to new technologies like artificial intelligence, machine learning, behavioral analytics and blockchain’s secure recordkeeping to help identify and prevent fraud incidents.
As real-time payments become more ubiquitous, enhancing fraud prevention capabilities is a pressing priority across the financial sector.
