03/01/2021 | Press release | Distributed by Public on 03/01/2021 08:16
March 1, 2021
Editor's note: This is the first of a three-part series.
It's been exciting to see such rapid innovation in payments recently. It's also been a little frightening, when we think of how quickly fraudsters and cybercriminals capitalize on fast-changing behaviors and how slowly others may adopt mitigation strategies.
To shed light on some of the new threats and offer tips on mitigating these new threats, Take On Payments is running a series of three posts, starting with this one. This first post presents some research and other information on the threat trends and contributing factors that escalated in 2020. The next two posts highlight innovative fraud mitigation strategies.
Account takeover fraud
New account opening fraud
Fraudsters see new payment behaviors and innovations as low-hanging fruit, a path of least resistance because sophisticated fraud mitigation tools have yet to be applied. Also, businesses and consumers who are new to digital or online commerce can be slow to adopt security best practices. So how should fraud mitigation strategies change to meet new threats? The next two posts will discuss how fraud strategies can build resistance with updates to organizational structure or expertise and innovative digital fraud prevention technology and security features.
By Jessica Washington, AAP, a payments risk expert in the Retail Payments Risk Forum at the Atlanta Fed