Financial safety

4 Global Fraud Payment Trends to Expect in 2020

Last year shaped up to be an intense one in the world of payments fraud, and 2020 is ramping up to be just as wild. Social engineering, identity fraud, behavioral biometrics and machine learning seem to be the top concerns for businesses in 2020.

As we move further into 2020, we looked at where the payments fraud industry is headed. The following are our top four predictions:

Unsupervised Machine Learning and Shared Intelligence

While supervised machine learning will continue to be the mainstay of fraud teams, unsupervised machine learning will start to gain a foothold and become a must-have for enterprise fraud protection. We will also see more interest among banks for shared intelligence (features and signals vs. data) for increased accuracy of fraud detection and prevention. The concept of a centralized payments intelligence hub could be a big trend in 2020, where information around fraudulent activity can be shared between organizations. For example, if one bank gets hit by a fraud pattern, other banks could learn from it and avoid falling into the same trap themselves. This creates a win-win situation between banks and their customers. Enterprisewide fraud management will become too narrow of an approach to risk management, which will help such a centralized intelligence hub to take shape.