We have the power to transfer money to anyone, from anywhere, without having to step foot in a bank branch. And with great power comes great responsibility amid bank transfer or payment fraud amounting to $1.6 billion in 2022.
Ravi Sandepudi, co-founder and CEO of Effectiv, told TechCrunch that now that banks can’t rely on seeing people in-person, there is heavy digitization that requires fraud checks to be done in real time. In addition, also take into account that fraudsters are getting smarter, in part, thanks to generative AI used to simulate people, signatures and voices.
“So many banks were getting hit by fraud and scaling back their digitization channels,” Sandepudi said. “You have five seconds to settle a transaction, where it used to take three to four days with Automated Clearing House (ACH). Even after the money moves, you could pull it back to ACH. Now with one-way payments, once it’s gone, it’s gone.”
