Fraud
prevention

  • The Payment Systems Regulator is introducing a revised CRM code, laying out a set of mandatory requirements for all payment service providers in order to try and reduce APP fraud. These requirements are hugely significant, introducing obligations such as shared customer reimbursement between sending and receiving firms and refunds needing to be provided to customers within 5 business days of a claim being raised.

    All payment service providers must comply with these obligations from the 7th October 2024. Malverde can help you understand these requirements and prepare your business to meet these new obligations.

  • APP fraud is the largest type of fraud by value and volume, creating a staggering loss of £485.2 million for individuals and businesses in 2022. APP fraud is differentiated from other types of payment fraud due to the fact that genuine customers authorise payments themselves, complicating the controls that can be put in place to identify and prevent it. Instances of APP fraud not only result in costly fraud losses as a result of needing to reimburse defrauded customers (see CRM requirements above), they can also cause significant reputational damage for your organisation.

    We can help you understand the various methods that can be adopted to minimise the risk of your customers being scammed.

  • A mule account is any account used to receive the proceeds of crime, and payment firms are required to proactively identify them. We can help you to identify the red flags that are associated with mule accounts, and advise on how to use data analytics techniques to identify, monitor and close these accounts.

  • Conducting thorough assessments to identify and evaluate potential fraud risks specific to your operations and customer base.

  • Assisting in the development, implementation, and enhancement of comprehensive fraud prevention programs tailored to your risk profile.

  • Designing and delivering training programs to educate staff about common scams, red flags, and best practices for prevention and detection.

  • Advising on and implementing payment fraud detection solutions – these solutions are typically provided by vendors that leverage cross-industry data/fraud indicators to improve detection. We can help engage, assess and select vendors/solutions that are right-sized for your business and problem statement.

  • Robust customer authentication and identity verification processes are required to prevent unauthorized access and account takeovers – we can advise on how to select partners that provide this functionality and how they can be integrated into your existing fraud technology landscape.

  • Developing strategies and implementing measures to prevent unauthorized access and account takeovers, including multi-factor authentication and biometric solutions.

  • Leveraging data analytics to identify patterns and trends indicative of fraudulent activities, enabling proactive fraud detection and prevention.

  • Evaluating and enhancing internal controls and governance frameworks to mitigate the risk of fraud originating from within your organisation (e.g. perpetrated by employees or contractors).

  • Understanding where fraud is occurring within your business, classifying this appropriately and recording losses is key to measuring the success of your fraud prevention programme and prioritising areas for improvement.

  • Developing and implementing incident response plans to ensure a swift and effective response in the event of a fraud incident.