ACI Worldwide releases APP scam losses report

Tuesday 5 December 2023 15:23 CET | News

ACI Worldwide has released its Scamscope Report which shows how scam losses are expected to hit USD 6.8 billion by 2027. 

According to Scamcope, a report by ACI Worldwide and GlobalData, Authorised Push Payment (APP) scam losses are expected to rise to USD 6.8 billion by 2027 across six leading real-time payment markets: US, UK, India, Brazil, Australia, and Saudi Arabia. Thus, losses to APP scams are expected to record an average CAGR of 11% from 2022-2027 across analysed markets.

APP fraud scams appear to evolve as real-time payments surge forward, and they occur via social engineering across social media networks or via telephone. As per ACI Worldwide officials, this awareness should put regulators under pressure to define accountability and assign liability, creating a cross-industry payments intelligence model. 

Among the markets covered in the report, Saudi Arabia and Brazil have the highest CAGR in scam loss value and are among the first three markets with the highest CAGR in real-time payments value. As the Scamcope paper shows, Brazil faces a lag in the development of processes and tools to detect fraudulent transactions. In Saudi Arabia, scams that occurred in more established real-time payment markets are also emerging here. 

Worldwide has released its Scamscope Report which shows how scam losses are expected to hit USD 6.8 billion by 2027.


How real-time payments could leap ahead of APP scams

According to the report, APP scam losses in the US will increase by 9% from 2022 to 2027, but, on the other hand, real-time payment adoption is projected to surpass this growth with a 41% CAGR.

The same assumption applies to India, with APP scam loss value significantly lower than the real-time transaction value. Meanwhile, as a precautionary measure, the Indian Banks Association suggested fixing a threshold limit of transactions for newly opened accounts.

Regulatory mandates for scam victim reimbursement

According to the Scamscope report, APP scam losses in the UK reached more than USD 587 million in 2022. These losses are driving market trends toward regulatory mandates to compensate scam victims. 

In June 2023, the UK’s Financial Services and Markets Bill came into effect, requiring banks to reimburse the victims of APP scams, and Australia intends to follow the UK’s lead. Moreover, The Australian Competition and Consumer Commission calls for a united front across public and private sectors to combat scams. Another step in reducing scamming infractions was a new Scam-Safe Accord, Australian banks coming together to help reduce scams by ensuring people can confirm they are transferring money to the person they intend to.

Report outlines 

  • According to the Scamscope report, approximately 3 out of 10 fraud victims close their accounts, posing financial consequences for banks. There is also increasing pressure on regulators to hold banks accountable for fraud.
  • APP scams are a cross-industry problem that requires solutions shared among financial institutions, the government, telcos and social media tech companies.
  • By closely monitoring both incoming and outgoing transactions and analysing account behaviour, banks can break the mule account chain and detect mule accounts associated with synthetic or stolen identities and instances of account takeover.
  • In the AI-driven era, a proactive approach is mandatory to combat scammers. 
  • Leveraging diverse data signals and advanced technologies like voice biometrics enables institutions to understand customer intent prevent emerging AI threats and safeguard customer relations.\

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: scam, report, online payments, online security, fraud detection
Categories: Fraud & Financial Crime
Companies: ACI Worldwide
Countries: Australia, Brazil, India, Saudi Arabia, United Kingdom, United States
This article is part of category

Fraud & Financial Crime

ACI Worldwide

Discover all the Company news on ACI Worldwide and other articles related to ACI Worldwide in The Paypers News, Reports, and insights on the payments and fintech industry: