Something old, something new in payments fraud

Something old, something new: In 2022, check fraud remains a focus of bank risk professionals, while instant P2P payments are an increasingly popular platform for scammers seeking to take advantage of consumers. With respect to the latter, consumers need to realize that “this stuff behaves like cash,” says Peter Tapling on the latest episode of the ABA Banking Journal Podcast, sponsored by Intrafi Network. That immediacy is why these platforms are attractive to both consumers and fraudsters. On this episode, Tapling and ABA’s Paul Benda discuss:

• The persistence of check fraud and check washing scams in 2022.
• How banks are tackling fraud that employs P2P instant payment platforms.
• Liability for transactions authorized by a customer that are later claimed to be fraudulent.
• The importance of consumer education campaigns like #BanksNeverAskThat and “Take Five to Stop Fraud.”
• Controls banks can put in place to limit fraud attempts without slowing down all instant payments across the board.

Tapling and Benda will discuss this topic in greater depth at ABA’s Conference for Community Bankers, Feb. 12-14, 2023, in Orlando.