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Julie Conroy Talks Faster Payments and FedNow with The Fraud Boxer

Rebekah Moody

4 July 2023

Faster Payments, Faster Fraud?

The Federal Reserve's forthcoming release of FedNow - its faster payments protocol - brings both opportunity and risk. This brilliant episode of The Fraud Boxer podcast delves into some of the thorniest questions around the impact of faster payments on fraud and scams, as well as the impetus for banks to seek out and shut down mule accounts.

Here are some of the key topics covered in the discussion:

๐Ÿ’ต An expanation of the fragmented faster payments landscape in the US and why it exists. What is the different between Real Time Payments (RTP) run by the Clearing House, and FedNow, run by the Federal Reserve. How does this fragmentation level the playing field for smaller financial institutions?

๐Ÿ’ต What will FedNow faster payments look like to the consumer? Will they opt in or will it be a transparent experience?

๐Ÿ’ต How will fraud be managed within the FedNow faster payment rails? Will there be centralized controls or will these be delegated to the individual institutions that send payments via the FedNow rails? What are the implications here?

๐Ÿ’ต What can the US learn from the UK, a country on the scams front line for the past few years?

๐Ÿ’ต What happens to liability for fraud and scams on the faster payments rail? Would a split liability between the sending and receiving bank create greater efficacy to find and close down mule accounts?

๐Ÿ’ต How can banks determine the intent of a customer payment, beyond what they are trying to do? Is there ever a requirement for slower payments and in what circumstances?

๐Ÿ’ต How can financial institutions leverage advanced behavioral analytics - such as those provided by the Darwinium platform across the entire customer journey - to understand unusual patterns in customer behavior that may indicate a potential scam payment?

To listen to the full episode, click on the link below.

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