European Banks Collaborate To Develop A Tool For Combating Fraud
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The pan-European payment substructure that operates the RT1 and STEP2 instant payment systems has released the guidelines for its Pan-European Fraud Pattern Anomaly Detection (FPAD) feature.
EBA Clearing enlisted nine banks across six countries to participate in training for a new feature to fight fraud in account-to-account and instant payments.
It has also introduced a developer portal with a sandbox to assist users in developing and testing FPAD’s application programming interfaces (APIs).
The Tools Will Help Service Providers Fight Fraud
During the summer, a data model exercise was carried out to work with users to detect patterns of fraudulent activities and assess anomalies. This process includes getting user feedback to identify and qualify these anomalies.
FPAD will include several real-time tools, like an Iban/name check, for detecting and preventing fraud. These tools are created to help payment service providers all over Europe in their efforts to fight fraud.
Users of RT1 and STEP2 can improve their understanding of risk by gaining insights into patterns and anomalies from a central infrastructure level perspective, complementing their risk evaluations.
In the initial implementation phase, the launch will include functions and tools designed for post-transaction investigations and activities. These tools evaluate and understand the risks involved with transactions and accounts. Users can access these specialized tools and features before they begin their transactions.
More European Banks Unite To Tacke Fraud
The global head of fraud services at ING, Jaco Struik, expressed satisfaction with the team’s involvement in the analytical pilot phases and design of FPAD. The team believes FPAD holds the potential to impact fraud prevention significantly.
It provides the team with fresh insights that only a network-wide perspective can deliver and enhance its ability to detect and prevent payment fraud in the future.
The global head of payments & cash management at UniCredit, Raphael Barisaac, emphasized the rapid growth of instant payments and the pressing need for a high level of security and improved anti-fraud measures. With FPAD, European banks are uniting systematically to elevate their fraud-fighting capabilities within the SEPA perimeter.
European banks are better equipped to maintain the integrity of account-to-account and instant payment systems, paving the way for secure and safer financial transactions in the future.
