FedNow Set to Launch in July…
4 Things the Fed Will Provide to Help Combat Fraud
And 1 Thing Institutions MUST Do Themselves
The long-awaited launch of FedNow is almost here. This July, the instant, 24/7/365 payments and money transfer system will be implemented. While this is great news for consumers and small businesses, it will present some major challenges for banks and credit unions.
Because of the nature of FedNow, there will be practically no time for fraud teams to discover criminal transactions; and there is a strong likelihood we will experience a dramatic uptick in all kinds of transactional frauds.
To help stem the tide, the Federal Reserve has provided for some basic protections. Some of these elementary protections include:
1 – The ability for a bank or other financial institutions to establish risk-based transaction value limits.
2 – The ability to specify certain conditions under which transactions would be rejected, such as by account number (a “negative list”).
3 – Message signing, which will validate that the message contents have not been altered or modified.
4 – Reporting features and functionality, including reports on the number of payment messages that were rejected based on a participating financial institution’s settings.
While the Fed will offer at least a basic level of fraud protections, clearly this will not be enough. With instant payments comes instant fraud. Your institution MUST be able to address fraud in a FedNow world, in real-time.
Introducing RembrandtAi, the world’s most advanced, real-time transactional fraud detection and prevention system. Financial institutions who’ve implemented RembrandtAi say:
- RembrandtAi is an essential part of being fiscally responsible.
- RembrandtAi is the best available technology to safeguard depositor interests.
- Leading CUs say legacy batch systems are no match for the real-time power of RembrandtAi
- “In the past year alone, we’ve prevented possible losses to the Credit Union of over $1.8 million in fraud; this has also minimized member impact.”
- “Our team, heavily supported by the real-time AI capabilities of RembrandtAi, have reduced fraud dollar losses from branch and digital banking activity as well as debit card activity.”
- “RembrandtAi allows us to stop fraud from continuing once it has started.”
- “Our Board of Directors and members couldn’t be happier with the results and, of course, our P&L shows the bottom-line impact as well.”
- Hundreds of millions of losses have been averted when implementing RembrandtAi
FedNow will begin in July. You will almost certainly see a massive increase in transactional fraud at your institution. Better protect your depositors with the most advanced fraud detection and prevention system ever devised.
Discover The Real-Time Power of RembrandtAi