ACI Worldwide has published its 2024 Scamscope report in collaboration with GlobalData, a foremost data and analytics firm.
The report predicts a significant rise in Authorized Push Payment (APP) scam losses, which are projected to reach $7.6bn by 2028 across six major real-time payment markets including the U.S., U.K., India, Brazil, Australia, and the UAE.
The company highlighted that APP scams exploit the trust of individuals by manipulating them into making voluntary fund transfers, making these types of fraud particularly difficult to detect. This is compounded by the rapid adoption of real-time payments globally, which although increases transaction speed and accessibility, also offers scammers the opportunity to quickly divert funds beyond recovery.
ACI Worldwide detailed the planned countermeasures against the surge in APP scams, emphasizing the role of AI-driven fraud management systems. These systems are capable of analyzing transaction data in real time, detecting anomalies, and enabling collaboration across banks to mitigate fraud risks effectively.
“Integrating AI in financial services is a double-edged sword, both in enabling sophisticated financial crimes and fortifying defenses against them. Scammers are using AI to boost inherited trust to unprecedented levels, automating hits and driving more effective social engineering techniques,” Cleber Martins, head of payments intelligence and risk solutions at ACI Worldwide, commented. He also stressed the necessity of a coordinated defense across industries to dismantle mule networks and protect consumers better.
The Scamscope report also sheds light on the repercussions for financial institutions, which include significant erosion of customer trust and increased account closures, with 25% of scam victims likely to leave their financial institutions. These insights underscore the urgency for compliant and robust fraud prevention systems enforced by government mandates.
Further, the report provides a detailed country-by-country analysis of APP scam trends and their projected growth. Notable findings include Brazil’s anticipated highest growth in scam losses and India’s effective scam management strategies compared to other markets. The U.K., meanwhile, has seen a year-over-year decrease in APP fraud losses, attributed to new regulations and more effective fraud prevention measures.
