This post was originally published on Finextra (Security)
Gone are the days of signing for a payment – even entering a pin number can prompt exasperated eyerolls from consumers accustomed to completing transactions with a single tap. That expectation has now made its way online, with Open Banking making it increasingly possible to pay without entering card details. But with authorised push payment (APP) fraud on the rise, is a bit of friction simply the price we must pay to prevent fraud?
As the go-to method for a wide array of scams, the growth of APP fraud has been steep. Globally, this type of fraud represents 75% of all digital banking fraud in dollar value, and the losses in the US, UK, and India are expected to double, reaching $5.25bn by 2026.
Although the financial services sector is at the forefront of efforts to protect customers from fraud, including partnering with other sectors, governmental bodies, and law enforcement, part of that protection may inevitably mean retaining, or introducing, a level of friction.
There are several ways merchants and processors can protect the consumer against malicious actors. Effective methods include multi-factor authentication (MFA), 3D Secure (3DS) authentication, and Address Verification Service (AVS). But these add
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