FedNow instant interbank clearing and settlement platform

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Every country that has moved to instant payments has also seen a rise in fraud. The U.K. experienced a substantial increase in cybercrime following the introduction of its Faster Payments Service. Twenty years ago, U.K. banks started to face a surge in phishing attacks with losses escalating to £36 million by 2006. Anticipating the risks associated with the Faster Payments launch in 2008, U.K. banks implemented strong authentication measures using hardware devices to login and transact online, leading to a drop in fraud losses by 2007. And then the Faster Payment service was launched as the banks held their breath.

Despite all the measures they took, fraud incidents tripled within three years after the launch, proving the adaptability and creativity of cybercriminals to exploit new systems.

The trend suggests a clear lesson: Securing faster payment markets is a complex challenge, requiring banks to employ a diverse array of adaptive and flexible controls. ...

... Banks will need to equip their fraud teams with a strong scam detection model, and educate relationship managers to contact clients for confirmation before following verbal or digital instructions to move money via FedNow.
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FedNow fraud is coming … and banks aren't ready

Banks have a simple choice: Either invest in fraud controls to prepare for FedNow, or expect draconian supervisory measures that will increase friction and confuse customers.

www.americanbanker.com

 

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Walmart customers will soon have the option to pay directly from their bank accounts with instant transfers for online purchases. The enhanced feature is a flash point in the escalating tensions between merchants and the card networks setting the fees for payment processing. The world's largest retailer has offered pay-by-bank through Walmart Pay since earlier this year. Until now, the transactions were akin to digital checks and took roughly three days to finalize when being processed through The Automated Clearing House, the same network often used for bill payments or paycheck deposits. Soon, customers opting for pay-by-bank transactions will see the purchase reflected in their bank account balance instantly -- and Walmart will receive the funds immediately. ...

Walmart Plans Instant Bank Payments, Cutting Out Card Networks - Slashdot

An anonymous reader quotes a report from Bloomberg: Walmart customers will soon have the option to pay directly from their bank accounts with instant transfers for online purchases. The enhanced feature is a flash point in the escalating tensions between merchants and the card networks setting...

news.slashdot.org