ACI and Banfico Team to Tackle EU/UK APP Fraud

Payments tech firm ACI Worldwide has teamed with account verification FinTech Banfico.

The partnership will allow ACI to help banks and payment service providers (PSPs) in Europe and the U.K. comply with mandates to offer confirmation of payee (CoP) and verification of payee (VOP) services, per a Thursday (Feb. 6) news release.

VOP services is a pan-European regulatory requirement under the new European Instant Payment Regulation, which all PSPs must adhere to by October, the release notes.

It allows PSPs to confirm account names and numbers before carrying out a transfer, and is designed to reduce the risk of fraud, including authorized push payments (APP) fraud.

“Additionally, Banfico is a Pay.UK-certified CoP aggregator, enabling ACI to offer CoP services to new and existing Faster Payments customers in the UK,” the release added. “CoP—an account verification/name-checking service for UK-based payments—provides consumers greater assurance that they are sending payments to the intended recipient.”

This added security helps consumers avoid accidentally making payments to the wrong account holder and offers extra protection against fraud and identity scams, the companies added.

“Account verification services are a critical component of modern payment systems. VOP is a key requirement as part of Europe’s Instant Payment Regulation. Similarly, in the UK, most major banks and PSPs have implemented CoP to enhance payment security and reduce APP fraud,” said Nick Craig, head of ACI’s European operations.

“Partnering with Banfico enables ACI to support our customers to adhere to new market and regulatory requirements more swiftly and to make instant payments more secure.”

In other fraud prevention news, PYMNTS spoke last week with Brian Oh, head of digital products, security and fraud at FIS Global, about the difficulties the payments industry faces when trying to balance a frictionless experience with the need for security.

When it comes to fraud prevention and customer experience, “those two often clash,” Oh told PYMNTS. “They do not go hand in hand — oil and water there.”

But as fraudsters become more sophisticated, the security imperative is increasing for financial companies that need to achieve a balance between security and convenience.

“We don’t look for frictionless; we look for effortless,” Oh said. “When we do add friction, how easy is it for a good actor to pass through? And for bad actors, is it enough friction that they decide to go somewhere else?”

Fraudsters, that report noted, are opportunists.

“It’s like being chased by a brown bear,” said Oh. “You just have to be faster than the next person. Fraudsters jump from institution to institution looking for the easiest target.”