Payment Fraud Prevention Partnerships

The Partnership Imperative

How Cross-Industry Collaboration and AI are Fortifying Defenses Against Payment Fraud

The State of Fraud in Numbers

$362B
Projected global online payment fraud losses in the coming years.

79%
Of organizations faced fraud attacks or attempts in 2024.

Only 22%
Successfully recover 75% or more of lost funds, a sharp decline from 41% in 2023.

The Evolving Threat Landscape

Fraud is converging across payments, crypto, and money mule networks, demanding cross-channel detection. AI-driven scams like Authorized Push Payment (APP) fraud are accelerating, while traditional methods remain potent.

⚠️Top Threat Vectors of 2024:

  • Business Email Compromise (BEC): 63%
  • Check Fraud: 63%
  • Wire Transfers: Overtaking ACH as most vulnerable to BEC

Most Targeted Payment Methods

Checks
63%

Wire Transfers
58%*

ACH Credits
37%

*BEC-related targeting. Data from AFP 2024.

The Power of Collaboration: A Unified Defense

Financial institutions are shifting from isolated defenses to collaborative ecosystems. By sharing data and insights, they create a formidable barrier against sophisticated fraud networks.

🤝Consortium Analytics

Analyzing millions of counterparties across institutions to flag high-risk payees in wires, checks, and instant payments before funds are lost.

🧠Smarter AI Models

Cross-industry data pools provide AI platforms with comprehensive eCommerce and payment data, drastically improving pattern recognition and fraud detection accuracy.

“Fraud detection providers must utilise data collected throughout the whole eCommerce process to advance AI models.”

– Cara Malone, Juniper Research

Fraud Detection Market by Segment

$63.5B
2023 Market

Electronic Payment: 42.18%

Other Segments (Services, etc.)

AI & Technology: The Frontline Defense

Leading vendors are leveraging AI-orchestrated platforms to analyze vast datasets for subtle fraud patterns. The electronic payment segment dominates the market, reflecting the critical need for robust online transaction security.

Market Leaders & Their Edge:
  • MaxMind (22.78% share): Leading software for safeguarding transactions.
  • Signifyd (19.07% share): AI-trained models using full eCommerce lifecycle data.

Challenges & Opportunities

Key Challenges

Fragmented Signals

Converging fraud across payments, crypto, and mule accounts complicates detection without a unified, cross-channel view.

AI Arms Race

Defenses must scale against AI-powered fraudster tactics while meeting strict compliance deadlines like Nacha’s March 2026 rules.

Actionable Opportunities

Leverage Consortiums

Join partnerships for counterparty risk sharing, enhancing detection across institutions before transactions are complete.

Invest in Orchestration

Adopt AI-orchestrated platforms that prioritize end-to-end data for superior pattern recognition and proactive defense.

Ready to Build a Stronger Defense?

Let’s discuss how collaborative strategies and cutting-edge AI can protect your organization from the next wave of payment fraud.

Schedule some AWESOME and let’s talk >

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