Electronic payments take many forms. Retail payments include electronic bill-payments, person-to-person or business-to-business credit transfers, direct debits and direct deposits.  Wholesale payments include Automated Clearing House (ACH), Real-time Gross Settlements and similar inter-bank systems. Payment channels continue to proliferate, with new entrants offering low-cost funds transfer through the online or mobile channels.

The Norkom Payments Fraud solution combines information about the financial aspect of the payment with channel information to derive accurate fraud risk indicators.  Norkom offers a library of payment fraud detection scenarios to help you manage the risk associated with payment fraud. 

The payments landscape is rapidly changing and new technologies including mobile-based payments have enabled non-traditional service providers to enter the market. Changing regulations have decreased clearing times and blurred the distinction between domestic and international payments. The pace of change has created the opportunity for innovation in financial crime and creates new fraud management challenges for service providers:

• Clearing cycles are becoming shorter, reducing the window in which to detect and prevent fraud
• Traditional payment methods including cash and check (cheque) are in decline, being replaced by electronic alternatives such as ACH, Faster Payments or SEPA payments with a new fraud exposure
• Volumes are rising at double-digit rates, requiring efficient risk management solutions
• Existing Know Your Customer (KYC) / Customer Due Diligence (CDD) controls are not effective when payment originators, intermediaries and beneficiaries are walk-in customers.

Key benefits of Norkom Payment Fraud solution:

• Accelerates time-to-value with the inclusion of a cross-channel detection scenario library for a wide variety of payment fraud typologies including wire fraud, ACH fraud, and account takeover and mule accounts
• Enhances fraud operational efficiencies with market-leading enterprise alert and case management capabilities, which includes a financials and recovery module to track and analyze losses
• Blocks transactions in real-time or diverts to a batch-based payment engine
• Reacts to fraud or attempted fraud with automated response management
• Integrated Command & Control reporting module provides accurate, relevant fraud metrics and activity dashboards to all levels of management.
• Loosely-coupled services architecture can be re-configured as your financial institution’s enterprise fraud architecture evolves
• High degree of configurability in detection and investigation components, empowering clients to modify the solution with minimal reliance on Norkom.

The Extendable Fraud Solution 

Norkom’s Payments Fraud solution can be deployed standalone or as part of an overall Norkom Multi-Channel Fraud solution.  Because all Norkom financial crime and compliance solutions are built on a single, underlying enterprise architecture, you can extend the payments fraud solution at any point in the future with minimal effort. Extending the Norkom Payments Fraud solution across other types of fraud also means that you can begin to link fraudulent payment activity with suspicious activity in other products or channels.  

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