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Real-Time Payments Sparking Fraud Worries Among FIs

Experts worry that credit unions and other FIs are facing a "perfect storm" of fraud.

New worries over payments fraud. New worries over payments fraud. (Source: Shutterstock)

Real-time payments may be booming, but they may also be growing targets for fraud — and credit unions and other financial institutions are getting worried, an industry pro warned this week.

The payment method, which allows financial institutions and members to pay bills and make payments almost instantaneously, can also enable criminals to avoid evade manual reviews, security measures that identify out-of-pattern activity and ACH service blocks, said Mike Lynch, who is chief strategy officer at San Francisco-based risk-profiling company Deep Labs. Growing account takeover activity, poor consumer password hygiene and social engineering vulnerabilities, among other things, may be helping criminals exploit real-time payments, he said.

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Tina Orem

 

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