Instant Payments and the Implications for Scams: Panel Discussion Recap - Global Anti-Scam Summit Americas 2024

Date of Event: November 12–13, 2024

Event: Global Anti-Scam Summit Americas 2024

This panel explored the challenges and opportunities presented by real-time payment systems in the context of fraud and scams. Moderated by Simon Miller of Cifas, the discussion included experts from the UK, Canada, and the US, who shared insights on the regulatory landscape, fraud detection, and collaborative strategies.

Key Themes and Insights

Simon Miller opened the discussion by highlighting how instant payment systems, while beneficial to consumers, have created new avenues for scammers. He emphasized the need for robust governance and collaboration across sectors to mitigate these risks.

Luke Reynolds (Mastercard) explained the importance of profiling both sender and receiver behaviors within real-time payment systems. He noted that in the UK, the liability shift has driven banks to adopt network-level fraud detection solutions, but broader collaboration with social media and telecom platforms remains critical.

Rob Mara (Ernst & Young) described the fragmented regulatory and operational landscape in the US, which complicates fraud detection across multiple payment channels. He stressed the need for AI and machine learning to counter increasingly sophisticated scams.

Joanna Schoneveld (Interac) highlighted Canada’s approach of embedding fraud prevention capabilities into its forthcoming real-time payment systems. She noted that Canada’s delay has allowed it to learn from other countries, incorporating robust fraud controls like central risk lists and network scoring.

Jeff Morton (RBC) shared his perspective on Canada’s collaborative efforts, emphasizing the value of combining proprietary fraud detection tools with network-level analytics. He also noted ongoing work to address authorized fraud, a growing area of concern.

Challenges and Opportunities

Panelists discussed several challenges, including:

• Regulatory Gaps: The need for consistent fraud regulations and better coordination across jurisdictions.

• Data Sharing: Limited cross-sector collaboration and the absence of standardized frameworks for sharing fraud intelligence.

• Operational Barriers: The difficulty of integrating advanced fraud detection tools while meeting regulatory requirements for model validation.

Despite these hurdles, opportunities include leveraging AI for proactive fraud detection and fostering global collaboration through initiatives like the Global Signal Exchange.

Looking Ahead

The panelists agreed on the need for:

• Enhanced engagement with regulators to standardize fraud prevention frameworks.

• Greater inclusion of telecom and tech companies in fraud prevention strategies.

• Scalable solutions that combine institutional and network-level insights.