Instant payment fraud in Europe – How can you guard your transactions?
Fraud is on the increase, and while the speed of instant payment schemes provides a step-change in customer experience it also makes them a particularly enticing target for fraudsters. Verification of Payee is a key tool in ensuring funds go to the correct beneficiary - it is also increasingly a regulatory requirement.
As part of the new EU regulations on instant payments, financial institutions must verify the account details of the payee before initiating a transaction. This Verification of Payee (VoP) service has many benefits including prevention of misdirected payments (both fraudulent and accidental), improved customer service, avoiding payment delays and ensuring compliance where this is a regulatory requirement.
In this factsheet we consider:
- the urgency for implementing VoP in Europe
- the important features that a financial institution should look for in a VoP service
- the benefits of using a vendor partner to deliver VoP and other regulatory requirements
- how Finastra differentiates its offering and can also provide additional fraud management and complementary services through fintech partners on its FusionFabric.cloud innovation platform
