Addressing APP Fraud: Introducing FinCrime Dynamics’ APP fraud testing

APP (Authorised Push Payment) fraud is a rapidly evolving threat in the financial sector, now accounting for roughly 40% of all fraud cases in the UK. The PSR has taken decisive action, and from 7 October 2024, both sending and receiving financial institutions will be mandated to reimburse victims of APP fraud. This new regulation creates urgency for banks and payment providers to bolster their defences against fraud, not only for the innocent victims affected but also to prevent significant financial losses for their institutions.

In response, FinCrime Dynamics has developed an advanced APP fraud testing SaaS service powered by their proprietary Synthetizor® technology. This innovative solution has been built together with the expertise of Money Laundering Reporting Officers (MLROs), Heads of Compliance, Heads of Fraud, and other industry leaders in the banking and payments sector. The goal is clear: to help financial institutions significantly reduce their operational and reputational exposure to APP fraud costs.

Measure and Mitigate Your APP Fraud Risks

The FinCrime Dynamics SaaS solution offers a comprehensive solution to help institutions fortify their defences against APP fraud. Here’s how it works:

• Spot the gaps: The service enables institutions to identify vulnerabilities in their existing fraud controls. By simulating different APP fraud behaviours, the platform helps uncover weaknesses that fraudsters could exploit, allowing institutions to address these gaps proactively.
• Quantify losses: Financial institutions can measure and report potential losses from APP fraud. Through detailed simulations, the service estimates the financial impact, helping institutions understand the magnitude of the threat and prioritize their efforts accordingly.
• Benchmark performance: The platform allows institutions to compare their control performance against industry peers. This benchmarking capability provides valuable insights into how an institution’s defences stack up, highlighting areas where they may lag and identifying industry best practices.
• Improve performance: Using the insights gained from the simulations and benchmarking, institutions can tune their controls to enhance performance. Continuously improving fraud controls ensures that institutions remain a step ahead of evolving fraud tactics.
• Advanced AI defences: FinCrime Dynamics leverages a library of fraud simulations and synthetic data to build high-performance AI defences. These AI-driven solutions are tailored to assess weaknesses comprehensively and provide robust protection against APP fraud.

The SaaS solution is more than just a testing tool—it’s a strategic ally in the fight against fraud. By simulating hundreds of APP fraud scenarios, the platform enables institutions to rigorously test their controls and refine their strategies to stay ahead of fraudsters.

Staying Ahead of the APP Fraud Threat

Financial institutions must act swiftly and decisively to enhance their defences with the impending regulatory changes mandating APP fraud reimbursement. FinCrime Dynamics’ APP fraud testing SaaS service is a critical resource. By identifying control vulnerabilities, quantifying potential losses, benchmarking performance, and improving controls, institutions can significantly reduce their exposure to APP fraud.

Staying ahead of the threat is paramount in an era where fraud tactics are continuously evolving. FinCrime Dynamics’ innovative solution empowers financial institutions to not only comply with upcoming regulations but also protect their customers and their bottom line from the ever-growing menace of APP fraud. As the industry moves towards greater accountability and consumer protection, tools like these will be indispensable in ensuring financial stability and trust.

Let’s solve APP fraud together

Interested in building your dream APP fraud-fighting solution? Join our APP fraud-fighting community