The payment industry is witnessing evolution at a rate that was once inconceivable. And despite the efforts of financial institutions and issuers to prepare for the attempts of fraudsters that inevitably follow the introduction of new forms of payment, there continue to be major, but avoidable, fraud events. At the center of it all is a phenomenon: a general misalignment that often forms on day one between the readiness of FIs and the true fraud risks that accompany payment innovations. In this new world of payment technology, understanding how the alignment between the adoption of payments and fraud controls breaks down from the start is critical. Without it, FIs will continue to fall into the same trap, experiencing avoidable losses and the kind of regulatory scrutiny and reputational damage that undermines consumer confidence and adoption of these new ways to pay and get paid.

This original report, sponsored by ACI, examines how the recent evolution of payments has influenced the choices that institutions make when managing for fraud, the implications of those choices, and opportunities to more effectively get ahead of fraudsters in this new era of digital payments.

This research report was independently produced by Javelin Strategy & Research. Javelin Strategy & Research maintains complete independence in its data collection, findings, and analysis.