New Report: How Alipay Fends Off The Fraudsters

Alipay discusses how payment platforms can use strong KYC methods to keep apps secure and improve authentication in this AML/KYC Tracker®.

Alipay discusses how payment platforms can use strong KYC methods to keep apps secure and improve authentication in this AML/KYC Tracker®.

Consumers and retailers have become more wary of handling physical cash during the COVID-19 pandemic, spurring some to turn to mobile payment apps instead as a safer, contactless alternative. Fraudsters are eager to take advantage of green app users who may be unfamiliar with the tools to scam them out of their funds, however. Payment platforms must therefore be vigilant in protecting their growing customer bases. That includes imposing strong know your customer (KYC) measures to prevent bad actors from onboarding in the first place.$47.5M: Amount that Commerzbank London was recently fined for AML failures

The payment app space is not the only one gearing up against crime, of course. Other industries are also looking to ensure their preparedness against new attacks and complying with new anti-money laundering (AML) policies that are anticipated to roll out later this year. The July “AML/KYC Tracker®” dives into all the latest developments worldwide.

Around The AML/KYC World

Identity verification and authentication solutions help financial institutions (FIs) block out fraudsters, but leveraging just one or two of these offerings may not be enough. Some FIs are therefore using digital identity networks that help them access and draw insights from a wide variety of verification tools. This is intended to furnish them with more holistic views of their customers.

FIs especially need to make sure they have strong digital ID verification offerings in place during this time so that customers will not have to visit branches in person and risk their health. Indian FI IDFC First Bank recently announced that its customers could now remotely onboard via video-based KYC, sparing them from making on-site visits.23M: Number of AML and CTF violations Westpac allegedly committed from 2013-2019

Customers are increasingly using remote, mobile services and fraudsters are seeking to take advantage. Criminals in India recently launched a spate of attacks in which they pretended to be bank representatives contacting victims about “updating” their KYC. These criminals sought to trick mobile wallet users into downloading apps that gave the fraudsters control over their devices.

Find these and all the rest of the latest headlines in the Tracker.

How AI-Powered Risk Engines, Biometric Authentication Secure Alipay Against Scammers

Fraudsters are eager to abuse payment app users by tricking them into sending funds to the scammers on false pretenses and conducting a myriad of other schemes. Payment app providers must create security by catching such crimes in the act and preventing fraudsters from onboarding in the first place. In this month’s Feature Story, Victoria Liu Edison, head of compliance for the Americas for Ant Financial — the company behind digital payments service Alipay — explains how it has worked to create smooth yet secure onboarding and payment experiences for users in China. Edison discusses leveraging tools like artificial intelligence (AI)-powered behavioral analysis, biometric authentication and digital ID verification.

$1.1M: Value of the financial penalty levied on SEB Pank for AML, CTF noncompliance Find the full story in the Tracker.

Deep Dive: How P2P Payment App Providers Create Safer Transaction Environments

Cybercriminals do not limit their schemes to just scamming customers into sending them funds via mobile payment apps — they also often try to take over users’ accounts. App providers need to be ready to detect and thwart these attacks by implementing robust authentication measures. This month’s Deep Dive examines cybercriminals’ account takeover tactics and how app providers can combat them.

Read the Deep Dive in the Tracker.

About The Tracker

The “AML/KYC Tracker®,” a Trulioo collaboration, provides an in-depth examination of current efforts to stop money laundering, fight fraud and improve customer identity authentication in the financial services space.