Faster Payments in the UK
Lots of newsfeeds this week talking about the move to faster payments in the UK and the welcome news that consumers (and business) will not have to wait up to 3 days for money to transfer between accounts.
The Issue this raises is that the consumers accounts that have been compromised and are in fact being used for fraudulent transactions have to be detected faster (i.e. before they had 3 days foe the transaction to complete).
This gives the banks in the UK a big challenge to make extra sure that the consumer logging into the account is actually who they say they are.
My take is that risk based authentication can help in this area, looking at the nature of the consumers log in (i.e. have they logged in from this machine before, from this geolocation, is this there usual log in behaviour?) along with two factor authentication.
The bottom line is the UK banks have put a lot of work into making sure fraud does not shoot up with faster payments, I just hope that they are successful!
