This alert may not be shared outside your organization, Do Not Repost or send, place on other websites, List servers, or send to others via email, including other associations or parties. Members and Law enforcement use only. Contact us for any permissions. To do otherwise will result in the loss of membership.
Complete Story
05/16/2024
75% of Large Banks Agree to Reimburse Victims of Authorized Fraud
PYMNTS
The Federal Reserve’s FraudClassifier divides fraud into two categories: authorized fraud and its unauthorized counterpart.
Authorized fraud occurs when a legitimate party initiates a payment only to have a bad actor intervene and hijack the funds. Unauthorized fraud, on the other hand, happens when bad actors initiate or redirect a payment through an account takeover or by stealing account-holder credentials.
Although the first of these — authorized fraud — accounts for only 37% of the losses financial institutions (FIs) must absorb, it’s the form of fraud that will most likely undermine customer satisfaction and retention.
The PYMNTS Intelligence report “Leveraging AI and ML to Thwart Scammers” found that fraud incidents continue to plague FIs and their customers, despite ongoing efforts to educate consumers on steps they can take to protect themselves.
Alerts
The FRPA alert system distinguishes us from other groups by gathering and providing information to law enforcement, retailers AND financial institutions.
more information
Resources
Your electronic library to help in fighting financial fraud for all of our partners.
more information