In a recent survey conducted by FICO, there is a conclusion that the ease of online payments and increased rate of real-time payment platforms has led to an increase in fraud-related losses among most banks. In the words of FICO President, Dan McConaghy, Banks need to go beyond ordinary passwords and OTPs and employ AI by adding customers’ biometrics, device telemetry and customer behaviour analytics to keep up with the changing payments landscape.
The research revealed that about 84% of Asia Pacific banks have a strategy of multifactor authentication methods including biometrics, normal passwords and behavioural authentication at 64%, 62% and 38% respectively. However, about 54% are still exposed to identity theft, account takeovers and cyberattacks as only 46% are currently making use of one or two of the multifactor authentication strategies. Hence, the majority of the surveys of the banks believed that they will be able to defend transactions on a real-time payments platform if there is a convergence between their fraud and compliance functions. Meanwhile, India’s online payment platform Paytm has filed a case against 3,500 mobile numbers in its bid to prevent phishing as the Indian market is concerned by the frauds and scams related to online real-time payment.
