Managing Instant Payment Risk & Fraud in the FedNow & RTP Networks

This compelling program will offer a comprehensive look into combating credit-push fraud in real-time payment systems. It will introduce a proactive Risk Management Framework, emphasizing the critical role of receiving institutions, which were traditionally viewed as passive but are now seen as pivotal in early fraud detection. In addition, it will cover rigorous transaction monitoring, particularly in accounts susceptible to fraud, and the importance of enhanced data sharing among financial institutions for effective fraud identification and prevention. Participants will also gain insights into the Federal Reserve's FraudClassifier Model, which categorizes types of fraud within the FedNow service, aiding institutions in consistent reporting and response strategies.

Moreover, this webinar will explore recent updates to the Nacha rules that require all stakeholders in ACH transfers, except consumers, to actively engage in monitoring and managing fraud risks. These include mechanisms for delaying or returning suspicious payments and standardizing descriptions to spot anomalies faster. Additionally, the specific controls and security features of the FedNow and RTP networks, such as real-time monitoring, strong authentication, and transaction limits, will be discussed to highlight how these platforms enhance the security and integrity of instant payments.