Are You Down with APP? Dealing With Authorized Push Payment Fraud – Insights From the Panel Discussion at Future Identity Festival 2024

Staying ahead of financial fraud requires both innovative technology and cross-industry collaboration. Recently, Ondrej Valent , Sales Director at HID, joined an expert panel with Claire Simpson – Payments Systems Regulator, Andrew Churchill – The Payments Association, Ezechi Britton MBE – CFIT, Daniel Saliba – Lighthouse Compliance and James C. – Zempler Bank?at Future Identity Festival in London. Drawing on deep expertise in digital identity and financial crime prevention, Ondrej and his fellow panelists discussed the challenges and opportunities in preventing authorized push payment (APP) fraud.

APP fraud occurs when fraudsters trick people into sending them a payment through social engineering.?The panel highlighted what the financial industry can do to restore trust and security in a digital-first world — and how fraud mitigation technologies fit into that picture.

Here are our top takeaways from the sessions:

Mandatory Reimbursement Drives Accountability Across Institutions

The panel examined the recent introduction of an ￡85,000 cap for APP fraud reimbursements in the UK, which aims to cover more than 99% of claims. In shifting the financial burden from individuals to financial institutions, this new threshold creates incentives for organizations of all sizes to invest in preventative measures that address fraud risk at both ends of a transaction — something that panelists agreed was an important step in the industry.

Data Sharing Between Institutions is Critical but Faces Privacy Hurdles

There is a strong consensus that increased data sharing between banks, payment providers, and regulatory bodies could help detect fraud earlier in the transaction process. The panelists advocated for frameworks where transactional-level data, behavioral patterns and potential fraud markers can be shared across institutions without compromising consumer privacy.

Global Fraud Prevention Needs Stronger Cross-Border Protocols

The panel agreed that preventing fraud in a globalized economy demands better alignment of cross-jurisdictional protocols, faster response channels, and clearer accountability to prevent financial losses and enhance recovery times across borders. They discussed the potential for centralized international databases to track fraud trends and identify linked accounts across countries, which would require collaboration between financial institutions, regulators, and law enforcement agencies.

Big Tech and Social Media Must Be Engaged in Fraud Prevention

It’s important to recognize the role of social media and tech platforms in fraud, as many scams begin through these channels. Going forward, we may see regulatory measures that push social media giants into active collaboration with financial institutions. Data sharing between social media platforms and banks could also significantly improve the identification of potential fraud early in the lifecycle of scams.

Behavioral Intelligence and AI Enhance Threat Detection

HID believes that integrating behavioral intelligence and AI helps institutions take a proactive approach to all types of financial fraud — and APP is no exception. Traditional methods are often reactive, and are therefore insufficient against advanced social engineering tactics. By monitoring cross-channel behavioral patterns, however, such as unusual transaction frequencies or inconsistent customer behaviors, AI-driven solutions can mitigate fraud attempts early on. The use of these tools can empower even smaller institutions to leverage sophisticated detection methods without prohibitive costs.

Want to understand how HID can support your fraud prevention strategy and help you prevent APP across digital banking channels? Explore more or book a demo.