#16: Fortifying Trust: Innovations in Consumer Fraud Prevention

3 Jun

31st July 2024

With:

| David McKay (HSBC Innovation Bank)

| Chad Reimers (TransUnion)

In Session #16, David McKay (HSBC Innovation Bank) and Chad Reimers (TransUnion) join FNA to discuss the evolving front lines of consumer fraud. As fraudsters pivot from technical hacks to "human hacks"—leveraging social engineering and deepfake technology—the traditional security perimeter is no longer enough.

The conversation centers on the shift from reactive detection to proactive identity intelligence. Our guests explore how the UK’s Payment Systems Regulator (PSR) reimbursement rules are forcing a radical rethink of fraud liability. By combining HSBC’s operational insights with TransUnion’s vast identity datasets, the session outlines a strategy for "Friction-Right" security: using silent, background authentication to protect users while keeping the payment journey seamless.

Key Discussion Points:

The Social Engineering Pivot: Why "Authorized Push Payment" (APP) fraud has become the dominant threat and how banks are responding to "manipulation at scale."
Identity as the New Perimeter: How TransUnion leverages device reputation, behavioral biometrics, and synthetic identity detection to verify users in the background.
The PSR Reimbursement Impact: Analyzing how the 2024 UK mandate is incentivizing banks to invest in advanced "Confirmation of Payee" and mule-detection tools.
The Education Gap: The role of consumer awareness in stopping scams at the source and the challenges of protecting "vulnerable" digital cohorts.
Friction vs. Flow: Strategies for implementing "Positive Friction"—interrupting high-risk transactions with meaningful warnings without hindering legitimate users.
Cross-Industry Collaboration: Why the "Trust Equation" requires data sharing between banks, telcos, and digital platforms to dismantle fraud networks.

Watch on Demand:

Listen on: Spotify | Apple Podcasts | Amazon Music