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Payment fraud: Understanding the changing tactics

If the headlines about payment fraud, embezzlement scandals, and data breaches worried you, you are not alone in this race. The risks associated with cyber-attacks and business fraud can halt the process not only from a technology side but also from process and people perspectives.

Here are some factors responsible for turbo-charging payment frauds:

The ‘New Normal‘ has made institutional payments an attractive vehicle for criminals. The security of back-office processes and application networks is a primary concern for financial institutions and corporates to prevent payment fraud.

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Expect a sharper increase of payment frauds in 2023

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Of organizations surveyed saw payment fraud rise in the final months of 2022

Top payment fraud challenges for financial institutions

The threat of payment fraud is constantly evolving. It is a question of debate for payment protectors to figure out how cybercriminals will exploit the landscape. New procedures, techniques, and tactics continue to emerge as fraudsters uncover new weaknesses and faults in financial security systems to trick naive individuals. However, financial institutions need to stay one step ahead before losses occur. Below shared are the top three payment fraud challenges for banks:

Challenge #1

High volumes and frequencies of false positives halt actual customer payments and build the necessity for high-costing staffing and unsustainable models.

Challenge #2

The fraud actors seek to compromise the bank’s cross-border infrastructure.

Challenge #3

The legacy processes of fraud detection technologies are unfit for newly built digital models of today’s payment ecosystem.

Top three payment
fraud challenges in Business/Corporate payments

Undoubtedly, the pandemic has put the digitization push button into overdrive, adding more digital systems and electronic payment schemes. These new additions have created more disparate data sources and workflows to already established complex operations.

Challenge #1

Using multiple systems owing to remote work schedules has made it challenging for IT teams to integrate their systems fully with ERP and banking platforms.

Challenge #2

As e-commerce expands, fraudsters are misusing payment networks, and data theft grows alongside.

Challenge #3

Email-based attacks and non-uniform development in technologies and software platforms complicate the systems.

How ECS Fin is making all the difference?

In 2016, Swift launched the CSP (Customer Security Programme) to address cyber and payment fraud risks with an increased focus on detective and preventative, ‘real time’ controls at both the transaction and enterprise levels. Every year, the CSP controls change to match the evolving threats across the financial community. The CSP controls change every year in line with evolving threats across the community. The 2022 control framework includes 32 control, 23 mandatory, and 9 advisories.

As our understanding of cybersecurity protection and the methods used improves:

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of Operational Costs

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of reduction in False Positives

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of less time spent on each fraud investigation

ECS Fin is one of the trusted and prime choices for performing assessments following the SWIFT CSP Certification. Our expert team is fully equipped with knowledgeable insights and cybersecurity protocols to walk you through CSP attestation. Our services include checking audits, vulnerability scanning, incident response planning, and logging & monitoring. We help you understand compliance status each year ahead of the attestation to stay on top of the activity untill all documents are ready to upload onto the SWIFT KYC-SA portal.

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