In 2025, payment fraud remains a significant threat, particularly for FinTech platforms like Cash App, whose parent company, Block, faces scrutiny after a $255 million settlement over inadequate fraud prevention. Fraud often begins during onboarding, where criminals use forged documents and synthetic identities to bypass identity checks, gaining access to platforms. This opens the door for transactional fraud, where stolen funds are laundered through mule accounts. Effective prevention requires a layered approach, incorporating secure onboarding and AI-driven transaction monitoring to identify anomalies. New regulations in the UK mandate that payment providers reimburse victims of authorized push payment (APP) fraud, marking a shift in liability. The projected losses from global payment fraud could exceed $362 billion from 2023 to 2028, with APP scams constituting a significant portion. To combat this evolving threat, FinTech firms must adopt advanced fraud detection technologies that foster customer trust and ensure compliance.
Source link
Share
Read more