Strengthening the core: What is next in banking to combat fraud?

Abstract

This paper examines how fraudsters misuse the banking infrastructure to their benefit, particularly through methods like authorised push payment fraud and the exploitation of the direct debit infrastructure. Banks, payment service providers/merchant acquirers, scheme owners and clearinghouses each have a role to play as critical players in combating this type of fraud, but too little has been done so far. To tackle this growing threat, the paper outlines actionable changes, ranging from enhanced regulatory frameworks to tailored merchant strategies. These changes can be made by each player to address and reduce the gaps in the banking infrastructure and the relevant payment types going forward, providing a roadmap for a more secure payments ecosystem.