BPC Banking Technologies on new fraud threats to look out for in 2021

The COVID-19 pandemic has brought about significant changes in our shopping and payment behaviors, leading to an increased reliance on bank apps, contactless payments, and QR codes. This shift has, however, opened up new avenues for fraudsters to exploit unsuspecting users. A recent report from BPC Banking Technologies sheds light on the challenges posed by these new types of payment frauds. Emmanuel Obinne, the West African Head of Growth and Partnerships at BPC Banking Technologies, shared insights on the evolving landscape of fraud prevention in a recent interview on CNBC Africa. The report highlighted that nearly half of fraud cases go undetected, pointing to the difficulty in identifying fraudulent activities amidst the rapid adoption of digital payment technologies. With the influx of new users, including millennials and older individuals, transitioning to digital payments during the pandemic, fraudsters found a lucrative target. The lack of customer education on securing digital credentials further compounded the issue, leading to a surge in reported fraud cases across various regions. Emmanuel Obinne emphasized the need for intelligent fraud management solutions to enable real-time response to emerging threats. Financial institutions are increasingly seeking tools that can profile clients, leverage machine learning algorithms to track transaction patterns, and implement strong customer authentication measures. Biometrics, such as fingerprint and iris scans, along with tokens and consent management, are being deployed to empower customers in securing their transactions. The use of biometrics emerged as a potential avenue for individuals to enhance their protection against fraud. By incorporating biometric identifiers into the authentication process, users can add an extra layer of security to their transactions. Technologies like fingerprint recognition and live face detection play a crucial role in verifying the authenticity of users and preventing unauthorized access. The report also highlighted the bleak outlook for fraud in the global payments market, with projections estimating potential losses of $200 billion over the next five years. While fraudsters continually innovate and adapt to technological advancements, financial institutions must deploy agile fraud management solutions to mitigate risks. Employing a holistic approach to fraud detection across multiple touchpoints, including ATMs, digital platforms, and marketplaces, is vital in combating evolving fraud schemes. Emmanuel Obinne underscored the importance of ongoing innovation in fraud prevention, emphasizing that combating fraud is a continuous journey rather than a destination. By leveraging machine learning algorithms, neural networks, and AI-driven solutions, financial institutions can stay ahead of fraudsters and safeguard their brand reputation. Continuous monitoring of customer transactions and swift response to emerging threats are essential to ensuring a secure payment environment for customers. In conclusion, the evolving landscape of payment fraud necessitates a proactive approach to fraud prevention and risk management. By adopting robust fraud management solutions, integrating biometrics for enhanced security, and embracing a culture of innovation, financial institutions can effectively combat the growing threat of fraud in the digital payment ecosystem.