19 December 2024 Holiday Special featuring Colin Parsons of Nasdaq Verafin on faster payments fraud
episode
Off the Rails from the U.S. Faster Payments Council - FPC
29 min
2 speakers
5 chapters
transcribed 1 month ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What is the main topic discussed in this episode?
Off the rails from the US Faster Payments Council.
I'm Reid Lutanen, Executive Director of the U.S. Faster Payments Council, and this is Off the Rails from the U.S. Faster Payments Council, sponsored by Open Payment Network. Today I'm talking with Colin Parsons, Head of Fraud Product Strategy at NASDAQ Verifin. Colin and I talk about trends in faster payments fraud, a paper from our fraud work group, which is sponsored by NASDAQ Verifin, and which you can find in the Knowledge Center on FasterPaymentsCouncil.org. And we also get into Christmas movies and other things on the holidays. So let's get right into it.
All right. We're joined by Colin Parsons from NASDAQ Verifin. Colin, thanks so much for joining us again.
Thanks, Reid. Happy to be back for a second time.
Yeah, great to have you back on the show. And as we get going, first, a huge thank you to NASDAQ Verifin for sponsoring the FPC's Fraud Work Group. That group just put out a paper that we're going to kind of use as a bit of a starting point for this conversation, because I think it serves as a good frame. So why don't we start with an overview. The paper goes into categories of fraud and fraud mitigation tactics. And I think level setting there is really a good place to start as we kind of dive into a conversation that's going to focus largely on fraud and faster payments.
Yeah, for sure. So there's a wide variety of types of fraud mitigation techniques. They can kind of be grouped into a few broad categories. And that's kind of the approach that the paper takes there as well. So If we think about the beginning of an interaction from a fraud point of view, it would be when an account's being opened. So enhanced authentication, so things like multi-factor authentication, biometric verification, really ensuring that an account is secured from authentication point of view, making sure that the people who are authorized to access the account are the ones that are accessing the account. That's kind of the first step first interaction from a fraud point of view and necessary to make sure that you know who's sending those payments, who's interacting with those accounts.
Then if we kind of move to when the transactions are happening, that's where we get into the category of transaction monitoring. So that's analytics and potentially things like machine learning that can be used to detect patterns or anomalies in transactions that might be suspicious and could potentially be indicators of fraudulent transactions being made or unusual activity. Um, So that's kind of at the time of transactions. Then there's when a transaction is being initiated, one of the techniques or categories is called confirmation of payee. So confirmation of payee is when really what you're trying to do is make sure that you are sending to an account that's owned by the intended receiver. So I'm sending a payment to Reed and the owner of that account is actually Reed.
And it also helps from a kind of error prevention point of view to make sure you're not sending payments to the wrong person. And then there's a broad category, I guess, of collaboration or information sharing. There's kind of a number of different ways. One of the primary ways to think about that is in the context of the information sharing that would be available in the United States via the Patriot Act for purposes of detecting money laundering or terrorist financing, things like that. One of the things that that can be used for as well is from a fraud point of view, as realistically, once you make a fraudulent payment, that the proceeds of those funds are then criminal proceeds and then are going to potentially move on to be laundered through the financial network.
That's where information sharing comes in. There's also potential for intelligence sharing, understanding typologies of different categories of fraud and things like that, and sharing that from one financial institution to another. And then finally, we have enhanced consumer protection. So that's a category of things that essentially are
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Chapters
5 chapters
1
What is the main topic discussed in this episode?
0:05–11:40
2
What fraud mitigation categories does the FPC Fraud Work Group paper outline?
11:40–15:01
3
How does account opening and authentication reduce faster payments fraud?
15:01–18:57
4
What transaction monitoring and machine learning techniques detect suspicious payments?
18:57–22:00
5
How does confirmation of payee help prevent misdirected and fraudulent payments?
22:00–29:10
Speakers
2 identifiedMore from Off the Rails from the U.S. Faster Payments Council - FPC
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10 Sept 2026 Bridget Hall on Faster Payments ROI, International Best Practices, and Dumb Cooking
27 August 2026 Michael Sulla of Mastercard on Agentic Commerce
13 August 2026 Podcast Cathy Lesser Mansfield
30 July 2026 Podcast Erik Van Bramer from Federal Reserve Financial Services
16 July 2026 Callum Godwin of CMSPI on faster payments for merchants