Payment infrastructure solutions provider EBA Clearing has issued specifications for its pan-European Fraud Pattern and Anomaly Detection (FPAD) function.
FPAD will include real-time fraud prevention and detection tools to assist European payment service providers, including those using SEPA Credit Transfers and Direct Debits (STEP2) and SEPA Instant Credit Transfers (RT1) payments platforms. Providers’ individual risk views will be strengthened with insights from a central infrastructure level perspective, including the identification of patterns and anomalies.
The company has also launched a developer portal and sandbox to support the development and testing of FPAD’s application programme interfaces.
Currently, the service is in an analytical pilot phase intended to develop fraud pattern identification models and qualify anomalies through user cooperation. So far, nine banks across six countries have contributed to the pilot.
Deployment of the service will begin with a post-transaction investigation feature, EBA Clearing says, along with pre-transaction transaction and account assessment functions.
Erwin Kulk, head of service development and management at EBA Clearing, says: “We are grateful for the active engagement we receive from the analytical pilot banks. Together with these frontrunners of different sizes and from different countries, we are training the fraud pattern and anomaly detection models. These [will] create value for all STEP2 and RT1 users from day one.
“With the delivery of the specifications and the developer portal, our participants can start their activities to integrate FPAD insights into their own fraud-combatting tools and processes.”
Simone Löfgen, global head of payments platforms at Commerzbank, adds: “The growing use of instant payments requires faster and better fraud fighting tools. With FPAD, banks from all across Europe are pulling together to enhance fraud combatting – not just for one community, but all over SEPA. This will further improve the quality of our checks and the payment experience of our customers.”
