European credit sector associations call for greater fraud prevention efforts

The European Credit Sector Associations, composed of the European Association of Cooperative Banks (EACB), the European Banking Federation (EBF), the European Savings and Retail Banking Group (ESBG) have welcomed the publication by the Euro Retail Payments Board (ERPB) of its Working Group Report on fraud related to retail payments. 

On top of the three associations, other key stakeholders from the private and public sector have actively contributed to the Report. It identifies four “gamechanger” actions that are necessary to strengthen the fraud prevention and mitigation across Europe, as well as a set of best practices identified to combat fraud.

The report is the outcome of a collaborative effort that brings together the perspectives and unique insights from a wide range of parties affected by fraud, including representatives from consumer and merchant organisations, bank and non-bank payment service providers, central banks, the European Banking Authority, the European Commission, the European Data Protection Board, and Europol.

The four “gamechangers” identified for more effective prevention and mitigation of fraud are:

1. Effective cross-sectoral collaboration beyond the payment industry and shared responsibilities.
2. The sharing of fraud insights and data.
3. Supervisory enforcement and cooperation at the EU level across sectors beyond the payment industry.
4. Ensuring that product design prioritises consumer protection.

For each gamechanger, several actions are recommended that the EU, national authorities, and the private sector can implement. It is especially noted that these recommendations can be particularly relevant to the work of the European Parliament and the Council in the context of the ongoing negotiations on the proposal for a Regulation on payment services in the internal market (PSR) and beyond. The conclusions of this cross sectoral collaboration highlight that digital fraud and scams relate to a far broader and more complex matrix than the point of payment alone and should be regulated in a sufficiently comprehensive way outside the auspices of payments regulation.

The paper also includes a list of best practices, intended to serve as a collection of measures that public and private actors can draw upon when combating fraud.

The ERPB Working Group, launched in May 2023, was prompted by the rise of fraudulent activities accelerated by digitalisation and social engineering. This initiative underscores the need for all actors in the fraud chain to collaborate more efficiently in preventing and combating fraud.

 

UK headline inflation unchanged but core rises in August

The UK’s Consumer Prices Index (CPI) rose by 2.2% in the 12 months to August 2024, unchanged from July. On a monthly basis, CPI inflation rose by 0.3% in August 2024, the same rate as in August 2023.

Core CPI (excluding energy, food, alcohol and tobacco) rose by 3.6% in the 12 months to August 2024, up from 3.3% in July. The CPI goods annual rate fell from negative 0.6% to negative 0.9%, while the CPI services annual rate rose from 5.2% to 5.6%.

The largest upward contribution to the monthly change in CPI annual rates came from air fares. Air fares rose by 22.2% between July and August 2024. Fares usually rise between these months, but this was the second largest such rise since the monthly collection of prices began in 2001. The increase came principally from European routes. A year ago, air fares fell by 2.1% over the same period.

Within transport, the upward effects of air fares were partially offset by a downward effect from motor fuels. Meanwhile, the annual inflation rate for restaurants and hotels was 4.4% in August 2024, down from 4.9% in the year to July and the lowest rate since July 2021. On a monthly basis, prices fell by 0.7% in August 2024 compared with a smaller 0.1% fall a year ago.

Commenting on UK inflation largely in line with expectations, Pierre Roke, Associate at Validus Risk Management, said: “This CPI print is unlikely to shift market expectations that the Bank of England will hold rates steady, and, in fact, it highlights the continued challenges facing the BoE - particularly as it relates to services inflation. Andrew Bailey, who supported the rate cut, has since had a hawkish bias, stating, “Policy setting will need to remain restrictive” and “The course will therefore be a steady one.” Whilst markets are currently pricing in a 25% chance of another cut tomorrow and a total of 50bps by year-end, if growth remains robust and Governor Bailey continues to push his hawkish message towards only one cut, we will see increased volatility and short-term support for Cable.”

 

Most payment leaders see a need for tech upgrades

A vast majority - eight in ten - of payment leaders globally believe their companies need serious upgrades, if not a complete overhaul, of their payment technology, according to research from Primer, a global payments infrastructure platform.

The study, which surveyed 500 payment decision-makers across the US, UK, Singapore, France, and Australia, paints a compelling picture of how payment leaders are thinking about the future. These professionals aren’t just responsible for back-office functions anymore; they're driving strategic shifts, with 75% expecting payments to become even more critical to business success in the next five years.

Yet, despite the increasing importance of payments, most companies are lagging behind. A staggering 76% of respondents say their leadership don’t see payments as a strategic priority. This disconnect between executives and payment experts highlights a growing need for better alignment and understanding across organisations.

Different regions have different priorities when it comes to payment evolution. In Australia, France, and Singapore, the focus is squarely on reducing fraud and chargeback rates over the next year. Meanwhile, UK payment leaders are targeting automation and AI integration, and their US counterparts are concentrating on enhancing the customer experience.

However, many payment professionals feel they're not getting the support they need to make these changes. Nearly half (46%) are calling for greater backing from senior leadership, and 47% are pushing to spread payment knowledge across their organisations to tap into the full potential of modern payment systems.

One thing is clear: investment in payment technology is crucial. A full 80% of respondents believe their payment systems need significant improvement, and nearly 90% plan to make upgrades or adopt more flexible, agile payment platforms. These numbers suggest the status quo isn’t cutting it. Payment leaders are ready to move beyond transactional processes to systems that can truly transform their businesses.

“The role of a payment leader was virtually nonexistent a decade ago, but it has rapidly emerged as an essential function within many businesses,” said Gabriel Le Roux, CEO & Co-Founder at Primer. “As the role of the payment leader - and payments more broadly - evolve at pace, the key question is: how can payment leaders ignite growth for their organisations? Our research shows that modernising the tech stack will be crucial in these efforts. To succeed, payment leaders need technology that offers optionality, flexibility, and optimisation. Those who invest in these capabilities will thrive in the fast-changing and fragmented payments landscape.” 

 

DBS Hong Kong and Yedpay collaborate to launch merchant solutions tool

DBS Bank Hong Kong and The Payment Cards Group (Yedpay) have announced the launch of DBS MAX Merchant Solutions, which is pitched as a one-stop solution for managing sales operations. It features a suite of tools designed to streamline payment collections and enhance operational efficiency for merchants in Hong Kong. The payment collection settlements proceed as quickly as one day after the transactions, according to a press release from the bank.

Recent research by DBS Hong Kong highlighted that nearly 70% of merchant respondents are currently utilising digital payment methods, with 86% planning to adopt new digital payment methods in their operation within the next 12 months. However, inaccurate financial records due to reconciliation challenges (35%) and inefficient settlement time from their payment acquirers (31%) were the main challenges for businesses.

The new solution aims to address these pain points by offering swift onboarding, where business accounts can be opened as fast as one working day and collection settlements processed as quickly as one day after the transaction. The solution is compatible with a wide range of 21 payment options and provides flexible integration with various sales channels. By consolidating sales operation data and bank account information into a single platform, DBS MAX Merchant Solutions can help merchants enhance efficiency, gain data-driven insights, and advance their digital transformation while providing banking-level security safeguards.

 

Nacha announces Sardine as preferred partner

Fraud and compliance solutions firm Sardine has become Nacha’s latest Preferred Partner. Sardine joins a select group of organisations as a Nacha Preferred Partner in the categories of Compliance, Fraud Monitoring, and Risk and Fraud Prevention.

Sardine validates accounts for customers using both traditional signals, such as account holder name matching and balance, and its behavioural biometrics, which look at things such as copy/paste of customer personal information, or if the device is being operated with remote software. Additionally, Sardine offers compliance services including transaction monitoring for anti-money laundering and sanctions screening.

“By working together on innovative solutions, we can tackle the complex risks from AI-driven scams and authorised push payment fraud,” said Soups Ranjan, CEO and Co-Founder of Sardine. “Our platform not only handles real-time transaction monitoring but also protects the entire customer lifecycle, ensuring the integrity of the ACH Network.”