Latest news with #GloriaWan
Finextra
12-05-2025
- Business
- Finextra
Confronting cyber-fraud and risk strategies in US payments
0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. This is an excerpt from The Future of US Digital Payments 2025: ACH & Beyond. Kinexys by J.P. Morgan's Gloria Wan referenced the Trustpair US Fraud Survey Report in conversation with Finextra, and mentioned that 90% of US companies experienced cyber fraud in 2024. Nearly half (47%) of US companies also suffered a loss of over $10 million. Wan explained that there is 'an opportunity for the industry to take immediate actions to enable stronger collaboration and greater data transparency to help businesses and individuals manage fraud risks.' As the volume, speed, and complexity of digital payments accelerates, as does the sophistication of financial fraud. The financial services industry can no longer rely on responding to fraud risk; integration of proactive, real-time risk is needed to anticipate threats before they materialise. By preempting fraud, operational losses can be reduced and trust preserved across the ecosystem. Proactive, real-time risk detection is required at every stage of a transaction Traditional fraud systems have historically been reactive and have only identified anomalies after they have breached security or resulted in financial losses. Proactive risk recognition, on the other hand, allows payments firms to surface early signals of fraud, score and contextualise risk before a transaction completes, and model attack vectors with AI and ML to anticipate fraudulent behaviour across systems. Carl Slabicki, executive platform owner, treasury services at BNY, indicated in conversation with Finextra, that fraud detection is where AI is making some of the biggest strides in payments. In addition to this, ML is currently used to spot suspicious patterns before fraud happens. 'These models analyse massive amounts of transaction data in near real-time, flagging anomalies that humans might miss – and because they continuously learn, they adapt to new threats as they emerge,' Slabicki explored. A single risk signal is not enough information to effectively and wholly mitigate fraud In addition to taking a proactive approach, in 2025 and beyond, payments companies should prioritise leveraging information gathered from a range of risk signals and putting together a risk profile that fraudsters cannot bypass. Techniques that should be used to mitigate fraud in the future include: Device intelligence: Emulators, rooted/jailbroken devices, multiple logins per device Behavioural biometrics: Typing cadence, tap velocity, navigation patterns Network risk indicators: Proxies, TOR nodes, IP reputation, velocity anomalies Transactional heuristics: Unusual transfer amounts, frequency spikes, payment rail anomalies Recognising risk in real time allows for security measures that can be adapted according to perceived threat level. An intuitive user experience can be offered to low-risk users, while high-risk users are challenged – resolving the issue, yet not introducing blanket friction across all transactions. What does the industry think of the future of fraud prevention? Renata Caine, general manager/senior vice president, embedded finance, Green Dot, agreed that a proactive fraud prevention strategy and investment in advanced technology allows payments players to have a competitive advantage. Further, she agreed that AI and ML can improve anomaly detection. However, she added that there is 'no silver bullet for fraud prevention, but a multi-layer approach is the best option for mitigating fraud risk in digital payments.' It has long been clear that collaboration is crucial to combatting fraud, and as Caine exemplified, there is 'power in banks, fintechs and other industry players uniting to address and solve for this increasingly critical issue.' She added that the 'industry will never be able to stop fraud completely, as fraudsters are constantly evolving their tactics, but our chances of staying one step ahead of fraudsters to protect our customers are improved significantly through collaboration.' After building up considerable intelligence on potential threats, payments companies should continuously retrain models, incorporate analyst feedback and measure false positives. A virtuous circle such as this allows each fraud attempt to strengthen the system against future attacks. On this point, Wan said that while 'data sharing can deliver benefits for many use cases, the consideration on data privacy and legal constraints prevents sharing sensitive transaction and personal information data. With a federated machine learning mechanism, the industry can collaborate beyond data sharing to enable insights and capability sharing while preserving data privacy.' Moreover, Slabicki concluded by saying that as 'fraud tactics become more advanced, the US digital payments sector will need to stay ahead by developing stronger ways to recognise risks before they cause any damage."
Yahoo
28-04-2025
- Business
- Yahoo
Phixius, Kinexys Liink partner to bolster account validation processes
Phixius by Nacha has teamed up with Kinexys Liink, a bank-led data sharing network operated by J.P. Morgan. This partnership aims to improve the scope and efficiency of account validation services for financial institutions, fintech companies, and corporations across the globe. As part of the collaboration, Phixius will serve as the key US payment information network Responder for Kinexys Liink. This is said to enable Phixius to offer near-instant verification of domestic bank account details, facilitating faster and more accurate transactions for all parties involved. In exchange, Phixius users will benefit from access to Kinexys Liink's Confirm application, which provides global account validation capabilities. This will enhance the utility and international reach of the Phixius network, supporting seamless cross-border payments and reducing potential errors. Nacha ACH Network Development managing director Rob Unger said: 'Phixius' collaboration with Kinexys Liink offers a unique opportunity to facilitate collaboration across respective networks. 'Kinexys Liink and Phixius customers can benefit by validation services using data provided by either network, helping to mitigate payment fraud and reduce potential ACH returns.' Kinexys by J.P. Morgan is the blockchain business unit of the company, focused on creating scalable systems that help transform traditional business models. The company works closely with clients to reimagine the movement of information, money, and assets in the digital age. Kinexys Liink operates as a blockchain-powered, payment-rail-agnostic information exchange platform. Its goal is to provide secure and frictionless sharing of payment-related data, all while ensuring privacy, sovereignty, and security are maintained throughout the process. Via its Confirm application, Kinexys Liink allows for near real-time global validation of bank account details, such as ownership and transaction status. This enhances operational efficiency, reduces fraud risks, and helps minimise errors in international payments. Kinexys Liink at Kinexys by J.P. Morgan general manager Gloria Wan said: 'We are committed to enhancing the provision of secure, efficient data connectivity to address industry challenges and innovation opportunities. 'Through the collaboration with Phixius by Nacha, we look forward to expanding the reach of Kinexys Liink to further strengthen account validation and cross-border payment infrastructure globally.' "Phixius, Kinexys Liink partner to bolster account validation processes" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Business Wire
25-04-2025
- Business
- Business Wire
Phixius by Nacha Announces Collaboration With Kinexys by J.P. Morgan to Enhance Account Validation Capabilities
RESTON, Va.--(BUSINESS WIRE)-- Phixius by Nacha (Phixius) — a secure, peer-to-peer payment information network — today announces a strategic collaboration with Kinexys Liink, the world's first bank-led peer-to-peer data sharing network, part of Kinexys by J.P. Morgan. This collaboration establishes information exchanges between the two payment information networks, enhancing account validation coverage for financial institutions, fintechs and corporations. As part of the symbiotic relationship, Phixius will serve as Kinexys Liink's key U.S. payment information network Responder, enabling near real-time validation of domestic bank account data. In turn, Phixius participants will gain access to Kinexys Liink application Confirm's global account validation capabilities, expanding the reach and utility of the Phixius network. 'Phixius' collaboration with Kinexys Liink offers a unique opportunity to facilitate collaboration across respective networks,' said Rob Unger, Managing Director of ACH Network Development at Nacha. 'Kinexys Liink and Phixius customers can benefit by validation services using data provided by either network, helping to mitigate payment fraud and reduce potential ACH returns.' 'We are committed to enhancing the provision of secure, efficient data connectivity to address industry challenges and innovation opportunities,' said Gloria Wan, General Manager, Kinexys Liink at Kinexys by J.P. Morgan. 'Through the collaboration with Phixius by Nacha, we look forward to expanding the reach of Kinexys Liink to further strengthen account validation and cross-border payment infrastructure globally.' Kinexys by J.P. Morgan, the firm's blockchain business unit, builds scalable solutions alongside clients and creates ecosystems that could reimagine traditional business models to transform the way information, money and assets move. Kinexys Liink established the payment rail-agnostic, blockchain-based information exchange network designed to facilitate frictionless and secure payment-related information exchange while maintaining the three fundamental properties of information sharing: sovereignty, security and privacy. Through its Confirm application, Kinexys Liink enables near real-time global validation of bank account ownership, status and transactions, helping reduce payment errors, mitigate fraud risk and improve operational efficiency in international payments. About Nacha Nacha governs the thriving ACH Network, the payment system that drives safe, smart, and fast Direct Deposits and Direct Payments with the capability to reach all U.S. bank and credit union accounts. There were 33.6 billion ACH Network payments made in 2024, valued at $86.2 trillion. Through problem-solving and consensus-building among diverse payment industry stakeholders, Nacha advances innovation and interoperability in the payments system. Nacha develops rules and standards, provides industry solutions, and delivers education, accreditation, and advisory services.
