Financial institutions and payments players are looking to join forces in efforts to combat the rapidly rising payments fraud. In the last 18 months payments fraud has reached new heights. The adoption of new technologies by businesses and consumers has not only resulted in faster payments, but also faster fraud. This has become a bigger problem for banks, processors, card networks and a host of intermediaries and fintechs. With real-time systems like Fed Now, evolving digital payments technology, and artificial intelligence innovations, fraud schemes are getting faster and more sophisticated.
Could banks do more in preventing fraud if they shared information to crack down on criminals who shift from one bank to another in search of new victims? By sharing information banks could prevent a good amount of fraud before it ocurred, but until now, banks have been reluctant to share customer data with each other that might otherwise be helpful in fighting fraud and undercut their proprietary interests, but that attitude might be changing now.
What remains to be seen is whether technology innovations in the payments industry can slow down fraud or if financial institutions will join forces to combat it. We are always on the lookout at industry shifts and advancements so that we can provide our customers not only the best payment solutions, but also the safest.