Feedzai report shows banks' overconfidence on fraud

Fraud is evolving faster than the tools meant to stop it. For retailers and operators, this means the 'smooth' checkout experience you offer customers might be more vulnerable than your lending partners admit. A new report from Feedzai highlights a dangerous gap between how confident financial institutions feel and the reality of modern fraud. While many lenders believe their systems are robust, the rise of AI-generated scams and sophisticated identity theft is outpacing traditional defenses. For your business, this translates to potential risks in the credit application process. If you offer point-of-sale financing or Buy Now, Pay Later (BNPL) options, the security of those transactions relies heavily on your lender's ability to catch bad actors in real-time. The report suggests that many institutions are relying on outdated metrics, which could lead to an increase in chargebacks, disputes, and identity fraud at your registers. Protecting your revenue requires staying informed about how your financing partners are upgrading their tech. Don't take a lender's 'security' claims at face value. Ask about their specific AI defenses and how they handle synthetic identity fraud. As scammers get smarter, the friction in your application process might actually be a necessary shield for your bottom line.

Source: Finextra — Lending

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