Fraudsters Love RTP and Will Feast on FedNow. Is Your Financial Institution Prepared?
The FedNow service developed by the Federal Reserve is soon to launch. With RTP and FedNow, your banking customers (and criminals) will be able to deposit and withdraw funds in seconds. This leaves the door wide open for fraudsters.
Real-time settlement reduces a bank’s ability to detect fraud before it’s too late. Fraudsters know this, and bank losses are mounting.
But by utilizing advanced real-time AI tools, your financial institution can detect and prevent RTP and FedNow fraud as it’s happening. Potentially saving our bank millions.
Treasury and Risk
“We can reasonably expect fraud to increase after [FedNow] goes live. Instantaneous payments do not give financial institutions any time to identify suspicious transactions.”
Positives and Negatives of RTP and FedNow
Positives
Speed and Availability
Deposit and withdrawal of funds in seconds. 24/7/365.
Enhanced Reporting
Transaction details are instant with real-time reconcilement.
Modernized Payment
Mobile payment and transactions in real-time.
ACH a thing of the Past
Smaller institutions will no longer need to rely on ACH to conduct business.
Negatives
Speed and Availability
No time to detect fraud as it’s happening.
Enhanced Reporting
Transactions reconciled will include fraudulent activity. Potentially missed.
Modernized Payment
Mobile payment and transactions ripe for fraud with no-wait transfers.
Fraud Prevention Tools Obsolete
Most fraud prevention and detection tools do not operate in real-time. A real-time solution like ToolCASE is vital to prevent fraud.
“If bad actors are able to intercept a transaction and divert funds, by the time the parties involved notice the fraudulent activity, the company’s money might be impossible to recover.” – Treasury and Risk
The Preferred Real-Time Solution for RTP and FedNow Fraud
ToolCASE is the world’s most advanced transactional AI company. We are the retail banking and payments industry’s preferred choice for real-time risk management and fraud detection. We catch bank fraud as it’s happening. Before the criminals can get away with it.
Our enterprise-level advanced AI solutions are scalable and designed specifically for the retail banking and payments industry. Our machine learning technology helps prevent massive fraud losses at your bank. No matter what size financial institution you are, ToolCASE has the right solutions for you.
