Figuring out the best way to maximize money mobility is the goal in today’s digital-first economy, but digital banking’s vulnerability to bad actors has made fraud a pervasive threat to this ideal.
“Banks are thus tasked with delivering money mobility experiences that are not only secure and compliant with strict [know your customer (KYC)] and [anti-money laundering (AML)] regulations but also frictionless from the customer’s perspective,” according to the June/July 2022 edition of the Money Mobility Tracker®, a PYMNTS and Ingo Money collaboration.
“Balancing security with seamlessness is a formidable assignment, but fraud detection technology can allow FIs to identify fraud through passive verification, enabling money mobility that is both safe and seamless,” the Money Mobility Tracker® stated.
The Tracker examines how financial institutions (FIs) can adopt security, AML and anti-fraud measures during critical parts of the customer journey — including onboarding, account opening and funds transfer — while streamlining the customer experience to move money seamlessly.
“Preventing fraud while ensuring money mobility can be daunting, and the complex modern risk landscape makes it even more challenging,” the Tracker stated.
Hackers and organized crime rings are the most common types of bad actors these days, with both seeing an uptick in activity over the last two years, according to PYMNTS research.
“Organized crime groups are adopting many of the same approaches one might see in legitimate business organizations, giving their ‘employees’ goals and offering incentives and bonuses for ‘jobs well done,’” the Tracker stated. “Hackers, organized criminals and other fraudsters are also increasing both the number and the efficacy of their attacks.
With consumers embracing the convenience that comes with digital banking and its inherent risks wholeheartedly, FIs are likely cleaning up more fraud-related messes for their customers and trying to repair the broken relationships that come with those violations.
For more information, download the Tracker.