Play it safe: Level up your P2P loss prevention game

Person-to-person fraud is on the rise every day. 53% of Americans have already become victims of digital payment fraud,¹ and 48% expect to be a victim of cyber scams in the future.

Digital payment platforms are used for peer-to-peer payments, bill pay, storing gift cards, purchasing bitcoin, and contactless POS payments. Most offer little to no buyer protection.

Digital wallets represent immense money flow (a whopping $1.9 Trillion in transaction values in 2023) so financial institutions must be prepared for fraud attributed to person-to-person apps.

Bad actors can execute their cyber fraud through many schemes, but the common one involves ACH payments. It looks like this:

1. Commit a phishing scheme to trick the victim. This is usually a written communication like an email, text, or social media message, and can also be a phone call. In these communications fraudsters pretend to be the financial institution or a representative from the payment platform.

 

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