ADDRESSING THE B2B OPPORTUNITY

Fraud-as-a-service (FaaS) and furious: five fraud trends for financial institutions

B2B digital payments enable businesses to send money faster and more securely than paper processing. For this reason, businesses are increasingly shifting to digital payments to send money to other organizations.

Clive Cornelius and Edward Galvin

As of 2022, 64% of all companies were making over half of their payments electronically.¹

While digital payments are secure, there is still concern about digital payments fraud. Visa blocked $30 billion in attempted fraudulent transactions between January –June 2023.² And, according to 2023 Javelin research, 90% of surveyed businesses are expecting an increase in digital payments fraud this year.³

In 2022

64 %

of all companies were making over half of their payments electronically.¹

Fraud concern

$ 30 B

blocked in attempted fraudulent transactions by Visa, January – June 2023.²

Going up!

90 %

of surveyed businesses expect an increase in digital payments fraud this year.³

Typically, financial institutions (FIs) are the ones assessing and responding to each incident (for example, managing related chargebacks when it comes to cards).

To help mitigate these risks, here are five digital payment fraud trends to be aware of.

Conclusion

Being fully aware of key fraud trends helps financial institutions drive customer value by fighting cybercrime, protecting clients, and defending hard-won trust. Next up in our 5 in 5 series, we’ll explore exactly how financial institutions can work with merchants, acquirers, fintechs, and other stakeholders across the payment ecosystem to combat fraud and capitalize on smooth and secure customer experiences.

About the authors

Clive Cornelius

Head of Large & Middle Market, Visa Commercial Solutions, Europe

Edward Galvin

Head of Large & Middle Market Commercial Payments Sales, Visa Commercial Solutions, North America

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Javelin Advisory Services, Commercial Instant Payments and the Need for Speed, 2023
investor.visa.com, Visa research highlights emerging fraud schemes in retail and ecommerce,2023
Javelin Advisory Services, Commercial and Enterprise Payments Fraud, 2023
Visa, ‘What every merchant needs to know about friendly fraud, 2022
Visa, Visa’s growing services business infused with AI products, 2024
Visa, Visa Advanced Authorization and Risk Manager, 2024
Javelin Advisory Services, Commercial and Enterprise Payments Fraud, 2023
Visa, Visa Token Service: a unifying platform for mobile and digital payments, 2024
Visa, A Deep Dive on Tokens, Visa, 2024