Authorized push payment (APP) scam losses are on the rise, expected to climb to $7.6 billion by 2028 across six leading real-time payment markets (U.S., U.K., India, Brazil, Australia and UAE), accord...
OMAHA, Neb.: Authorized push payment (APP) scam losses are on the rise, expected to climb to $7.6 billion by 2028 across six leading real-time payment markets (U.S., U.K., India, Brazil, Australia and UAE), according to the latest Scamscope report from ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, in partnership with GlobalData, a leading data and analytics company.
APP scammers prey on trust by deceiving individuals into willingly transferring funds to them. This trust-based manipulation makes APP scams particularly challenging to detect as the transaction appears legitimate and bypasses traditional fraud detection systems and controls. As rapid global adoption of real-time payments transforms the speed and velocity of how money moves, enabling faster and more accessible transactions, scammers are exploiting the immediacy of these transactions to steal funds before they can be traced, spurring growth in real-time payment APP scams. The Scamscope report projects that APP scam losses through real-time payments will see a combined 2023-2028 compound annual growth rate (CAGR) of 17% vs. 12% CAGR for total APP scam losses worldwide over the same period and will comprise 80% of total APP scam values by 2028.
Financial institutions also face significant erosion of trust and rising customer attrition as consumers fall victim to APP scams. The 2024 Scamscope report reveals that 25% of scam victims will leave their current financial institution, and around 20% close their accounts without opening new ones. Government mandates that penalize non-compliance with fraud prevention measures and require victim reimbursement underscore the urgency for financial institutions to strengthen their defense and ensure compliance. Artificial intelligence (AI)-driven fraud management systems can help analyze transaction data, flag anomalies, and facilitate real-time collaboration with other banks.
"Integrating AI in financial services is a double-edged sword, both in enabling sophisticated financial crimes and fortifying defenses against them. Scammers are using AI to boost inherited trust to unprecedented levels, automating hits and driving more effective social engineering techniques," said Cleber Martins, head of payments intelligence and risk solutions at ACI Worldwide. "The rise of real-time payment APP scams requires a coordinated cross-industry defense to share precise and collective intelligence in real time. By breaking down silos and fostering cross-border collaboration, mule networks can be dismantled to better protect consumers."
Key report findings
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About ACI Worldwide
ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.
© Copyright ACI Worldwide, Inc. 2024
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay, and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries, or both. Other parties’ trademarks referenced are the property of their respective owners.
Fonte: Business Wire
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