How can you protect against APP fraud when your customers are your greatest vulnerability?

Detect and prevent scams to protect customers and reduce losses, while maintaining a seamless customer journey.

APP Fraud Solutions

Authorised push payment (APP) fraud involves criminals tricking victims into sending money via a bank transfer to an account which the criminal controls. This makes the fraud very hard to detect as the genuine customer is logging in, setting up and authorising the transfer, using their own devices.

APP scams have been rising quickly over recent years, according to the latest UK Finance Annual Fraud Report figures. In the first half of 2023, unauthorised UK fraud losses reached a staggering £580 million, of which £239.3million relates to APP fraud.

LexisNexis® Risk Solutions is actively supporting major banks in detecting authorised fraud using data and advanced analytics. We take a 360° view of trusted customer transaction patterns to understand what’s normal, in order to be able to pinpoint unusual behaviour as it happens.

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Authorised Push Payment (APP) Fraud

Impersonation Fraud

When a criminal pretends to work for a trusted organisation such as a bank or the police. Fraud losses exceeded £43.5 million across almost 5,979 cases.

Investment Scams

When a criminal convinces a victim to invest in a “highly lucrative” financial opportunity that is either completely fictitious or vastly exaggerated. Investment scam losses exceeded £57.2 million, across 5,112 cases in the first half of 2023.

Romance Scams

When a criminal adopts a fake online persona and grooms a victim via romantic pretenses with the aim of encouraging them to transfer large sums of money over. Romance scam losses rose to over £18.5 million in the first half of 2023, with a 29 percent increase in cases.

Purchase Scams

When a criminal tricks someone into paying for goods and services that don’t exist. Purchase scam losses rose to £40.9 million in the first half of 2023. The total number of cases was 76,946.

CEO Fraud

Where a scammer impersonates a CEO or other executive-level employee in the victim’s organisation, using emails or phone calls to request the victim actions an urgent financial payment or transfer. CEO Fraud losses rose to over £6.9 million in the first half of 2023.

Layering identity attributes to establish a 360° view of what is normal

The view of what is normal customer behaviour is formed by layering intelligence relating to their digital identity, physical identity as well as behavioural signals relating to how they interact with their device through behavioural biometrics, thus enabling banks to recognise sometimes very subtle differences that may be signs of coercion.

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Spotting scammed customers

The truth is, that a scam in progress looks very similar to a trusted customer, as it’s them carrying out the transacting, albeit as a victim of social engineering. The only way to detect this is to develop an even better understanding of customers through additional datapoints, in order to baseline user behaviour, so that even a slight deviation can alert the bank to send that transaction along a different path.

LexisNexis Risk Solutions uses machine learning to create specific models to target scams – suppressing some of the trusted intelligence and focusing in on subtle differences as well as risk factors common to scams, such as use of remote desktop software or changes in behaviour.

These and many other factors can be configured into models designed to alert banks to suspicious activity in near real time, to allow them to take action quickly. This approach also prevents any unnecessary disruption to the journey for trusted customers where activity appears normal.

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