2024 Trends & Predictions: Fraud Management

Continued innovation and advancements in technology have improved efficiency and security in many ways, but also increased risk to consumer privacy and security in others. Increased pressure on financial institutions (FIs) to protect their customers and members while maintaining new account growth and revenue will be a central focus for 2024. FIs need to focus on a few key issues that are likely to ramp up in the coming months. With the launch of FedNow , cybercriminals have yet another vector to abuse to gain access to unsuspecting consumers’ accounts. Additionally, protecting sensitive consumer data will become increasingly critical in the coming months as synthetic identity fraud poses new risks in the wake of lax authentication standards and ongoing corporate data breaches. Finally, cybercriminals will resort to drastic measures to get around biometrics authentication for a fast payout, threatening the physical safety of unsuspecting consumers. FIs must immediately assess security and fraud detection protocols as a measure of due diligence and privacy and security obligations.