Payments Fraud: What to Expect in 2024Peter Tapling Discusses Scams, Synthetic IDs and FedNow
As the adoption of real-time payments increases, the United States will likely see an increase in scams, which will further fuel the debate about reimbursement models for FedNow and RTP networks, said Peter Tapling, board member at the U.S. Faster Payments Council.
At present, the fraud rate on networks such as FedNow and RTP is not very high, while adoption rates are low. For instance, there are currently fewer than 100 transactions per day on FedNow. "This is the calm before the storm," Tapling said.
Networks need to work on strategies to interact with customers in a way that stops the payment before the payment instruction is accepted, he said.
"I need to know enough about the customer ... It's all the things we talked about - what devices, what time of day? Who are the senders and receivers? What are the typical dollar amounts? What's the behavior?"
In this video interview with Information Security Media Group, Tapling discussed:
- Why scams will continue to grow in the payment industry in 2024;
- The future of real-time payments in the U.S.;
- Why generative AI has a limited role in the fraud industry today.
Tapling leads PTap Advisory LLC, a services firm that helps organizations understand technology in terms that can help support their business strategy. He was the founding CEO of Authentify, the company that introduced out-of-band authentication to financial services.