Authorized push payment (APP) fraud is a growing concern, causing billions of dollars in global losses. APP fraud happens when fraudsters deceive consumers or individuals at a business to send them a payment under false pretenses to a bank account controlled by the fraudster. Despite the introduction of technologies like two-factor authentication, biometric security, and artificial intelligence, the rise of faster payments has made combatting this type of fraud increasingly difficult.

While faster payments offer convenience, they also create new opportunities for fraud. The real-time nature of these transactions leaves little time to detect or reverse fraudulent transfers, making APP fraud more effective. This rapid pace enables social engineering attacks, quick conversion of stolen funds into cryptocurrency, and the movement of money across borders, all of which complicates efforts to trace or recover funds.

Click Read More below for the complete article from Take On Payments, a blog sponsored by the Payments Forum of the Federal Reserve Bank of Atlanta.