Canadian payment fraud
One in five Canadian businesses experienced payment fraud in the past six months – despite 63 percent who feel confident in protecting their business against scams.
A new study from Payments Canada reveals that Canadian businesses have a higher rate of payment fraud compared to Canadian consumers at 20 per cent versus 13 per cent, respectively, although the types of fraud were similar for both segments.
Impersonator fraud, originating from a phone call, message or email that appears to be from a trusted business source (25 per cent), intercepted business e-Transfers (22 per cent) and credit card fraud (20 per cent) were the most common types of fraud. The amount lost was $3,000 or less for the majority of these businesses (63 per cent).
The rate of payment fraud remained consistent from 2023 at 19 per cent, despite 63 per cent of businesses who report that they feel confident in knowing how to protect themselves against payment fraud and cybercrime, and 61 per cent who said they are more aware of how to recognize potential threats.
Around one in seven businesses (15 per cent) lost money from payment fraud in the last six months.
Impersonator fraud represented 25 per cent of payment fraud experienced by businesses.
71 per cent of businesses were partially or fully reimbursed by their financial institution for lost money from fraud.
39 per cent of businesses store passwords on personal devices creating security risks.
45 per cent noticed an increase in fraudulent or suspicious activity directed through email.
65 per cent would be willing to take extra steps for online transactions if it meant they were better protected.
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Australia gives priority to wholesale CBDC over retail
The Reserve Bank of Australia is to prioritise the issuance of a wholesale central bank digital currency over a retail CBDC, arguing that a clear business case for the latter has yet to emerge.
It has concluded that a clear public interest case to issue a retail CBDC has yet to emerge in Australia. This assessment is partly informed by the observation that Australians are generally well served by the capabilities and resilience of the current retail payments system.
The RBA says that in jurisdictions that have issued a retail CBDC or indicated that it is quite possible in coming years, the main motivations have less resonance in Australia.
Nonetheless, the RBA and Treasury remain open to the possibility that this assessment could change over time as potential benefits and costs are better understood, both internationally and in a domestic context.
Inbound Transaction Screening
Chris Oakley, Head of Fraud, Form3, highlights an upcoming substantial shift in the sector where due to incoming regulations from the PSR in the UK and PSD3 across the European Union, banks will have to double down on their focus on the risk associated with receiving a payment, not only sending a payment as has been the case historically.
With current fraud screening methods built for outbound payments, after these regulations are mandated, receiving banks and sending banks will be forced to split liability for fraud and reimburse victims due to the PSR.
This dichotomy must also lead to changes in the way that money mules are detected, which is usually also conducted retrospectively - where this convergence of fraud mitigation and anti-money laundering happens, risks need to be managed in real-time and a wider single view of the customer will be of paramount importance.
Brite Payments, a provider of open banking-based instant payments, will host its upcoming webinar Payment Insights 2024 at 15:00 CEST (14:00 BST) on Thursday, 26 September:
More:
What if your wallet could think for itself
An experimental discussion podcast from Dave Birch about the impact of AI on retail financial services.
In brief
Barclays struggles to find buyer for UK merchants payments stake.
Sweden's central bank threatens banks with legislation to protect access to cash.