Cybercrime , Fraud Management & Cybercrime , ID Fraud

Using Behavior Metrics to Detect Authorized Payment Fraud

Steve Ledford of The Clearing House Offers Fraud-Fighting Insights
Steve Ledford, SVP, products and strategy at The Clearing House

It is particularly challenging for financial institutions to catch authorized push payment fraud, as there is a genuine customer logging in and carrying out transactions, says Steve Ledford of The Clearing House, a payments platform that all federally insured U.S. depository institutions are eligible to use for payments.

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"There are signs to look out for. For instance, is there an unusual type of behavior for this particular sender? If you see a payment that is unusually large, not in accordance with prior habits around this, especially to a new payee, you have a red flag," says Ledford. Ledford, who is also part of the Payments 20 Group, suggests leveraging behavioral metrics to tackle this type of fraud.

In a video interview with Information Security Media Group, Ledford also discusses:

  • How authorized payment fraud has evolved;
  • The challenges of fighting against this type of fraud;
  • Key technologies that can play a fraud-fighting role.

Ledford is senior vice president, products and strategy, at The Clearing House. He works with payments leaders on strategic issues. Earlier, he was a partner with Novantas, a financial services consulting firm. Before that, he was a leader in McKinsey’s global payments practice and was president of Global Concepts, a consulting and research firm specializing in payments and cash management.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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