Chapter 8

“Sharing fraud data in real time informs the big picture and enables collaboration”

Chapter 8 Fraud

The Emerging Payments Association (EPA) Asia is a commercial membership association of payments industry influencers. EPA Asia is part of the growing EPA global network. It runs more than 30 events each year, delivers eight projects annually to drive change, helps to connect the ecosystem, encourages innovation and profitable business growth. The EPA’s vision is for Asia is to be the regional Knowledge Hub for payments innovation. As it sets out to be the most influential trade body in emerging payments, the EPA’s mission, to collaborate to innovate, has the potential to improve lives everywhere.

What’s making the headlines?

Data privacy and policy
Real-time payments

Common themes

The vulnerabilities of people, systems and technology are exposed and triggered by changes in both internal and external factors.
In short, change creates new opportunities for fraud.
Some examples:

  • COVID-19
    • Increase in people working from home
    • Increase in people using digital banking
    • Change in the demographic using digital banking
    • Expediting contactless and digital payments
    • Driving e-Commerce
  • Technology advancements
    • More people using mobile and smart devices
    • Increase in connectivity and expanded use of 5G
  • Consumer habits and expectations
    • Regulation driven by consumer rights
    • Demand for convenience, security, access and control of money in real-time
    • Data breaches are in the news

The payments evolution

Innovation also creates opportunities for fraud.

  • Innovation creates exposure
    • As card fraud declines, digital wallet fraud increases
  • Infrastructure falls behind
    • IoT
    • Processing needs for high volume, low value
    • Need for fraud solutions to be real-time or near real-time not post decisions and repatriation after the fact
  • Competing vs. collaborating
    • Banks, merchants, etc.
    • Solution providers
    • Consortium models
      • Richness of data
      • Role for AI
    • Public vs. private sectors
  • Regulation
    • Getting to “just right”
    • Balance of not enough vs. too much
  • Liability: For new technology, where does the liability lie when things go wrong?
    • Protection of participants if irrevocable account to account payment
    • Charge-backs under card schemes
    • Personal vs. institutional liability
    • Toll-takers
  • Manual responses to digital problems
    • Telephone calls for payments authorisation
  • Card fraud
    • Merchants may process across multiple acquirers for backup purposes
    • Can be daunting to orchestrate a framework that works
    • Chargebacks are a hot topic with regulators, merchants, issuers and acquirers
      • Initial user experience, clear T&Cs, can reduce chargebacks
      • Cross-border differences

The opportunity

  • Education and communication
    • Giving consumers control via their smart phone to restrict transactions and to block a card engenders confidence
  • Integrate fraud and security to every discipline of payments
  • Shift in technology use
    • SMS secure short codes
    • Bio-metrics
      • Although concerns over the security of bio-data
    • Bio-behaviours
  • Multi-pronged approach
    • There is no silver bullet
    • Human risk remains
  • “Intelligent” regulation is the goal
  • Open Data
    • Sharing of data
    • Intermediaries and aggregators
    • Multiple parties handling data
    • Read only and write access
      • Write access changes the risk
    • Honeypots
    • “Make-good” for loss
    • Regulatory arbitrage
  • Collaboration for betterment
    • Global KYC
    • Shared learnings
    • Consortium model
    • Get solutions in market for the good of all
  • RegTech
    • Protection of bank vs protection of consumer
    • Regulatory costs

Mandy Killam

Executive leader in $1B firm | Payments | FinTech | Sales, Product, Technology, P&L Leader

With more than 20 years experience in the payments industry and roots in payments software development, and many roles in operations and finance, Mandy drives a focus in bridging the gap between payments strategy and delivery to help banks and financial intermediaries realize opportunities in the ever-changing payments space. Mandy started hercareer in payments with First Data, where she began as an engineer, then served in a variety of leadership roles in Application Development in the US and the UK. For the last 11 years, Mandy has held leadership roles at ACI Worldwide in Application Development, Product Management, Acquisition Integration, Operations, P&L Management and Sales. Mandy now leads ACI Growth Markets, which includes all markets outside North America, Europe and the UK.

Lynda McMillan

Head of Payments Representation at Commonwealth Bank. Board Director

Tertiary qualified Payment, Banking & Fund Management professional with over 30 years in the Finance & Banking Industry. Current Board Director of 3 Companies. 2019 Thought Leader for Women in Payments Over 10 years serving on Boards and Management Committees. Deputy Chair, Chair of the Audit, Risk and Finance Committees experience for both for profit and not for profit companies.

Co-Author and Fintech Advisor

Head of Financial Crime Governance at

Founder and Director at
Treadbird Ventures Pte Ltd

Vice President of Customer Success at

Founder at
Open Data Australia

Principal Consultant at

Sr. Director, Solution Success at

Managing Director of TRPC Pte Ltd

VP, Global Expansion at
Marqeta, Inc

Senior Associate at
Freshfields Bruckhaus Deringer