EBA Clearing has enlisted nine banks from six countries to participate in data model training for a new fraud prevention feature aimed at account-to-account and instant payments.
The pan-European payment infrastructure, which operates the STEP2 and RT1 instant payment systems, has released the specifications for its pan-European Fraud Pattern and Anomaly Detection (FPAD) functionality, along with a developer portal that includes a sandbox. This portal will assist users in developing and testing FPAD’s application programming interfaces (APIs).
Conducted over the summer months, the data model exercise focused on identifying fraud patterns in collaboration with users and qualifying anomalies based on their feedback.
FPAD will encompass a wide variety of real-time fraud prevention and detection tools, such as an IBAN/name check, to support the fraud-fighting endeavors of payment service providers (PSPs) throughout Europe. This will enable STEP2 and RT1 users to enhance their individual risk assessments with insights on patterns and anomalies from a centralized infrastructure perspective.
The deployment will begin with post-transaction investigation features, as well as transaction and account risk assessment functions that users can utilize before executing a transaction.
Jaco Struik, global head of fraud services at ING, stated, “We have been pleased to participate in the FPAD design and analytical pilot phases, because we believe FPAD can make a real difference for fraud combatting. It will provide new insights that only a network view can offer, helping us better detect and prevent payment fraud in the future.”
Raphael Barisaac, global head of payments and cash management at UniCredit, added, “Instant payments are growing rapidly, so a higher level of security and improved fraud-fighting tools are essential. With FPAD, banks across Europe are collaborating—taking a systemic approach—to elevate fraud-fighting capabilities within the SEPA framework.”