Banks must improve anti-fraud controls to fight APP scams.

Will the new rules be enough to tackle APP fraud, or will it simply cause more problems? Now, more than ever, banks need to innovate and educate to keep one step ahead of the fraudsters.

In a monumental move that has been applauded by consumer protection groups, the Payment Services Regulator (PSR) has mandated that from October 7, victims of Authorized Push Payment (APP) scams in the UK must be refunded (up to £85,000) by the account holder’s bank within a maximum of five days. 

This amount of £85,000 is significantly lower than the originally proposed £415,000, which was initially met with reservations by the UK Payments Association that it would “threaten the viability of smaller payment companies” . Other concerns were expressed by trade association, UK Finance, which feared the move would encourage more ‘complicit fraud’ and incentivize fraudsters to claim compensation money.  

However, for the customer, especially those who have fallen victim to APP scams, the move could not have happened sooner. 

This is positive news for UK victims of the APP scam, who for too long have often had to deal with the additional stress of attempting to have their money refunded.

Grigory Yusupov, Regional Director of UK at IDnow.

“This landmark decision should act as a reminder of the responsibility that banks have to their customers and a wake-up call to ensure their fraud-prevention and identity verification tool stack is fit for purpose, especially for social engineering-type attacks.”

It is hoped that the move will go some way to reducing the amount lost to APP scams, which in 2023 was estimated at a whopping £459.7 million.

A positive step forward – for the customer at least.

Before the recent ruling, there was no guarantee that victims of APP scams would be refunded, or who they should even turn to for help. For the unlucky few whose bank refused to refund, their last call was often to the Financial Ombudsman Service (FOS).  

From April to July 2024 there were 8, 734 complaints about fraud and scams, half of which were regarding APP scams. This was a significant increase on the same period of 2023 (6,094). 

The year on year rise in APP scam complaints can be attributed to; 

  • Increase of ‘multi-stage fraud,’ which sees funds pass through numerous banks, resulting in consumers submitting multiple claims.  
  • A growth in people inadvertently using their credit or debit cards to pay fraudsters, which are not covered by the Contingent Reimbursement Mode code or the new PSR rules. 
  • More online fraud cases submitted by professional representatives, including claims management companies.

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What is an APP scam?

While there are many different forms of APP scams, the end goal is always the same: to deceive individuals or businesses into sending money by fraudulent means. One of the most common forms of APP fraud is a romance scam. Read the story about how one British woman made it her mission to expose the romance scammers and even wrote a book about how she did it.

Other forms of APP fraud include: 

Purchase scams, where victims use a fake website or link in an attempt to purchase goods or services. 

Impersonation scams, where criminals pose as a well-known company or brand, such as a delivery firm, retailer or even HM Revenue & Customs and claim they have a parcel or bill that needs to be settled, for example. 

Investment scams occur when victims are duped into sending funds to a fraudster posing as someone with a ‘too good to be true investment.’ 

Read the story about how one man was contacted on Linkedin with ‘the offer of a lifetime,’ and proceeded to lose almost a million dollars.  ‘The rise of social media fraud: How one man almost lost it all.’ 

There are many others, including loan fee scams and lost pet scams. In fact, there are new APP scams created regularly, which is one of the reasons why APP scams are so dangerous and why the FOS is kept so busy. 

“Fraudsters’ methods are always evolving, and we continue to see that reflected in the complaints brought to our service,” said Pat Hurley, Ombudsman Director for Banking. 

“We are currently receiving – and resolving – around 500 fraud and scam complaints a week. In all the cases we receive, we’ll look at the individual circumstances and investigate whether a business did everything it was required to do. When we do uphold complaints, we expect firms to learn from our findings and apply them to any future interactions with their customers.”

What are banks currently doing to tackle APP fraud?

For banks, preventing APP fraud can often feel like a frustrating game of ‘Whac-A-Mole’; where after finally addressing and educating their customers on one form of APP fraud attack, a new variant suddenly springs up. This is why many banks employ AI to monitor transaction behaviors and cross reference historical spending patterns to flag potentially fraudulent activity. However, relying solely on AI can sometimes result in false positives or missed cases of social engineering. 

In general, banks tend to rely on specific risk signals, which are used to ascertain if a) the transaction is valid and authorized by a trusted account holder or b) the flagged activity is a genuine risk. However, as APP scam payments are authorized by the account holder, a regular bank’s defense systems do not necessarily flag such transactions as anomalies.  

From October 7, banks will be able to pause transactions for up to 72 hours when there are “reasonable grounds to suspect a payment is fraudulent.” Previously, banks had to either process or refuse a payment by the close of the next business day.

UK Fraud Awareness Report

Learn more about the British public’s awareness of fraud and their attitudes toward fraud-prevention technology.

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Can customers do anything to protect themselves against APP scams?

Of course, new regulations like October 7’s ruling may go some way to lessening the impact of APP fraud, by forcing banks to be held responsible, but as APP fraud appeals to human naivety, it can be particularly difficult to protect against. However, there are steps customers can take to protect themselves:

  • Too good to be true? If the offer or investment sounds too good to be true or is too cheap to be true, then there’s a good chance it probably is.
  • Is that really you? Is the bank, delivery company or even Keanue Reeves really contacting you? Fraudsters will impersonate anyone. If you’re unsure that the real company is contacting you, get in touch via official channels to check!
  • I beg your pardon? Fraudsters know that it’s often only a matter of time before people cotton on to the deception, which is why they tend to pressurize people to authorize payments as soon as possible.
  • How do you want to pay? If a company or person you have dealt with before is asking you to transact via a different payment method, then this is a red flag. 
  • Why do they want that? Do not give passwords or addresses or any other Personal Identifiable Information out over the web.

Why are APP scams so common?

The main reason why APP scams have become so commonplace and pose such a threat to the public isn’t because they are particularly sophisticated – after all, APP scams are essentially just social engineering. According to Lovro Persen, Director of Document and Fraud at IDnow, it is the sheer scale of attacks that people are subjected to that makes APP scams so dangerous. 

It’s a numbers game. We know that if fraudsters send 10 APP scam messages, they are unlikely to catch anyone, but if they send 10,000 messages, statistically there will be people who bite.

Lovro Persen, Director of Document and Fraud at IDnow

More must be done to raise awareness of the dangers of APP scams, especially with the more vulnerable groups like the elderly or the desperate.On paper, the decision to make compensation compulsory is positive, however, I do worry that banks may need to raise interest rates on loans and other services to make up for the loss of profit. In this regard, the financial compensation will affect the bank’s bottom line even more than it currently does.”

So, will compulsory compensation stop APP fraud?

Clearly, the fight against APP fraud is one that will not simply end on October 7. In fact, according to UK Finance, it may even make it worse: 

“We continue to express the opinion that the PSR’s approach may encourage more complicit fraud and exacerbate the APP risk as fraudsters capitalize on a reimbursement model which requires minimal consumer evidence, nor demonstration of consumer caution and a limited opportunity for payment service providers to investigate and challenge the consumer claim. This will inevitably increase the attractiveness of the UK to criminal entities.” 

The battle against APP fraud will not be won overnight. It will require regular regulatory updates to protect the industry. It will need a commitment from banks to educate their customers on the dangers of different forms of APP fraud. It will also require banks to innovate with new methods of fraud detection to not only protect their business bottom line and their customers but also ensure the customer journey is not too dramatically impacted.

How video identity verification can add an additional layer of protection against APP fraud.

While there will always be fraudsters on the lookout for new and inventive ways to deceive unsuspecting members of the public, banks have a responsibility to make it as difficult as possible for them. 

As APP fraud relies so heavily on real-time social engineering, a hybrid approach that combines automated detection with real-time human verification can provide an extra layer of defense and help to spot potential coercion. For example, when certain high-risk triggers are detected, such as unusually frequent payments to a new payee or a large, unexpected transaction, a live video verification session can be initiated to verify the transaction before it proceeds. 

This allows the agent to ask specific questions to verify the legitimacy of the transaction and identify potential fraud tactics, such as: 

“Can you explain the purpose of this payment?” 

“Have you been in contact with this payee before?”

“Is there any urgency pushing you to authorise this payment?”

VideoIdent Flex is designed to detect fraud at critical touchpoints, offering seamless real-time video verification for high-risk transactions. This solution is not only effective for onboarding and authentication but also plays a vital role in preventing APP fraud at the point of transaction. By combining AI risk scoring and live agent verification, banks can ensure that suspicious transactions are flagged and reviewed before being authorized.

Interested in more information about VideoIdent Flex? Check out our recent blog, ‘How video identity verification can help British businesses finally face up to fraud.’

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Banks urged to improve anti-fraud controls as APP scam compensation becomes compulsory. 1

Jody Houton
Senior Content Manager at IDnow
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Field Vision AI Prediction NFL App: How Does It Work?

  • Advanced AI Technology: Field Vision utilizes advanced Artificial Intelligence (AI) algorithms to analyze numerous variables in real-time during NFL games, providing accurate predictions on possible gameplay outcomes.
  • Real-time Data Analysis: This cutting-edge app collects and processes vast amounts of game data, including player performance, team tendencies, weather conditions, and historical data to generate predictions.
  • Predictive Modeling: Field Vision employs sophisticated predictive models that learn from past and current match data to forecast future game outcomes accurately.
  • User-friendly Interface: The Field Vision app is designed to provide in-depth, real-time insights in an easy-to-understand format, making it accessible for all NFL fans, from novices to experts.
  • Enhances Viewing Experience: By providing AI-generated predictions, the app enhances the viewing experience for NFL fans, adding an extra layer of suspense and excitement to the game.

Wouldn’t it be nice if somebody could devise some sort of easy-to-use app that consistently makes accurate NFL predictions? Sure, a lot of NFL sports bettors have created extensive spreadsheets, formulas, and other prediction tools that have worked to a certain degree. However, few if any have ever been consistent enough to trust.

Well, it looks like the sports betting community’s prayers may have been answered. Thanks to modern technology and innovative forward-thinking, an ex-NFL agent, a Nike executive, and a Stanford data scientist have come up with an AI-driven football prediction app called Field Vision.

This app’s creators claim that Field Vision offers users the most accurate game and player predictions.

Image Credit: BOY ANTHONY/Shutterstock

What is Field Vision AI?

Founded by CEO Scott Bouska and Chief Data Officer Cameron Taylor, Field Vision was made available at Google Play and the App Store just prior to the start of the 2024 NFL season. This groundbreaking app uses cutting-edge AI technology to offer NFL fans exclusive game and player predictions.

With its advanced predictive analytics, users can refine their football betting strategies, more accurately anticipate player outcomes, and elevate their understanding of the game.

The most exciting aspect of the app is that it is designed to accurately predict the outcomes of NFL games. It offers a few other cool things, too, like:

  • Matchup Analysis: Field Vision AI identifies the biggest mismatches on the NFL schedule every week. The app uses data from the last 5 years and bases its predictions on a variety of factors, including schemes, coaches, game plans, and the players.
  • Top Picks: Field Vision analyzes the weekly schedule and offers a list of the strongest picks.
  • Score Predictions: Field Vision uses AI to make its final score predictions based on a thorough analysis of team and player matchups.
  • Rankings: Field Vision automatically creates rankings based on the various strengths and weaknesses on a team and player level.
  • Expert Opinion: The Field Vision app grants access to a weekly blog that offers insight, analysis, and the top betting recommendations for each game.
  • Proprietary Metrics: Field Vision provides innovative metrics and state-of-the-art analytics so that you can unlock a deeper understanding of how specific players and teams perform in various scenarios. You can see if players are trending up or down.

Where to Download the Field Vision App AI

If Field Vision sounds like something you’d like to try, you can get the app at Google Play and the App Store. However, it isn’t free. The app comes with a subscription that costs $9.99 per month or $49.99 annually.

Many will see this as a good deal, considering how some other similar subscription prediction tools can cost hundreds of dollars per month.

Additionally, Field Vision doesn’t just help NFL bettors. This tool can be immensely helpful to fantasy football players as it analyzes individual matchups to help predict individual performance.

While Field Vision only predicts American football at the moment, developers are already thinking ahead to applying it to other major sports like baseball, basketball, and hockey.

Image Credit: New Africa/Shutterstock

If Successful, How Will Field Vision Affect Bookmakers?

Let’s imagine a scenario in which Field Vision delivers on its promise to offer consistently accurate predictions every time. You fork over the $9.99 per month and immediately start seeing significant success with your sports bets. This is where things get interesting.

You see, sportsbooks, especially online betting operators, have become well-known for severely limiting bet sizes for winning bettors. Some sports betting sites outright ban profitable bettors.

As such, it would be reasonable to expect that the bookmaker would eventually limit you or shut you down completely after you demonstrated that you’re a winning bettor.

Sports Betting Sites Already Control Winning Bettors

Let’s take this a step further and imagine that every NFL bettor is using Field Vision for their NFL picks, and they are kicking the daylights out of sportsbooks.

Don’t you think that the betting operators would stop offering NFL odds? After all, taking NFL bets would be a money-losing proposition for sportsbooks.

We must then consider the possibility of the Field Vision model being successfully applied to all other sports. What then?

Well, it would be a safe bet to predict that the sports betting industry as we know it would cease to exist. At the very least, it would become totally unrecognizable. All because sports became too predictable.

What Can We Reasonably Expect?

Field Vision is the first of its kind in terms of technology and availability to the general public. However, AI and machine learning have been used for years in several sectors, including professional sports.

The Philadelphia Eagles and the San Francisco 49ers are just two examples of the many NFL teams that leverage AI and machine learning to gain an advantage over opponents.

Even though Field Vision is definitely cutting-edge and futuristic, most reasonable folks don’t expect Field Vision to be 100% accurate. Many are skeptical of it even being able to achieve that magical 53% win rate, which is the win percentage needed to earn profits over the long haul.

Well, that 53% applies to spreads and totals. Being able to reach that seemingly modest benchmark would be an impressive feat.

Image Credit: alphaspirit.it/Shutterstock

Overcoming the X-factors in Prediction

One aspect of NFL football and sports, in general, is that there are so many X-factors that simply can’t be predicted. For instance, technologies like AI and machine learning aren’t yet at the point where they can expect when a sudden and strong gust of wind will coincide precisely with a field goal attempt.

Even the most modern technology can’t accurately predict whether a star quarterback will get injured or if the stud linebacker will slam back a batch of bad oysters on his way to the stadium.

The thing is that predictive software like Field Vision doesn’t have to be perfect to be effective. As mentioned, those who bet on spreads and totals only need to be right about 53% of the time to yield a profit. If it can do that, then Field Vision users have something to celebrate.

Heck, even if it consistently missed at a 53% clip, it would still be useful because you could profitably fade the app’s picks.

The March of Technology

Technology is evolving at break-neck speed these days, but finding perfection in a sports betting prediction tool is still a bit of a pipe dream. As of week 3 of the 2024 NFL season, we haven’t seen any panic from the bookmakers.

Even though it’s early, you’d think the app would have made a few headlines if it was living up to the hype early on. Then again, it’s a new app that’s only been downloaded around 500 times so far at Google Play. It’s too early to judge.

Should You Try Field Vision?

Field Vision might not be perfect, but there is no reason to believe that it won’t at least help some bettors. If not in terms of profits, then at least in terms of understanding the prediction process better.

One nice thing about Field Vision is the price. $9.99 is a drop in the bucket compared to the sky-high prices of other sports prediction tools. This makes the app affordable for almost everybody, including small-time recreational bettors. Because of this, NFL bettors should definitely give the Field Vision app a go.

In addition to the possibility of success and gaining better insight into NFL betting, the Field Vision app is a fun tool to use. Uses can deeply immerse themselves in the features and functions for hours on end. It will help them expand their betting horizons and see things from multiple angles.

Remember, you can always cancel your subscription if the app falls short of your expectations.

Image Credit: Andrew Angelov/Shutterstock

Should we All be Using AI For Sports Betting?

Unlike a couple of decades ago, NFL bettors now have access to a ton of stats to use to their advantage. However, sports betting statistics nerds are still trying to find out how to best use those figures.

For instance, how much weight does one place on the number of sacks a team recorded 4 or 5 years ago? How does the number of a receiver’s dropped passes three years ago factor into the equation today?

You can have all of the information in the world, but it’s useless unless you understand how to use it. Only time will tell if the forward-thinking creators of the Field Vision app have it figured out.

Just remember that the development of highly effective sports prediction software could spell the end of sports betting as we know it. It’s a bit of a conundrum, to say the least.

Title Image Credit: Owlie Productions/Shutterstock