This post was originally published on Fin Extra
How are faster payments contributing to the rise of fraud in wealth management, particularly investment scams?
Why is fraud growing at a faster rate than traditional financial assets, and what does this mean for wealth managers?
How are AI-generated scams exploiting vulnerabilities in instant payment systems, and how can wealth managers address these risks?
What key strategies and technologies can wealth management firms implement to prevent fraud, such as step-up verification and secure communication?
How can collaboration and data sharing across the industry help wealth managers identify and prevent emerging fraud threats?
The rise of faster payments has introduced significant speed advantages, yet fraud rates have increased by 25% YOY according to the Federal Trade Commission, with investment scams at the forefront of this growing problem. These scams capitalise on the speed at which funds can now be transferred, often allowing fraudsters to act quickly before any verification or detection can occur.
Fraud in wealth management is now growing at a pace that exceeds that of traditional financial assets. As wealth management firms increasingly adopt digital tools to facilitate faster transactions and investment opportunities, they also face a growing threat from sophisticated scammers.
This type of fraud
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