Most consumers in Canada have embraced instant payments, with a significant portion planning to continue using them in the future. However, concerns over fraud remain prevalent.

Global Concerns

A recent FICO report revealed that 91% of Canadians have sent real-time payments and 87% intend to keep or increase their usage within the next year. Despite this, more than two-thirds would feel more secure if banks could better detect and prevent fraudulent transactions.

Half of respondents indicated that stronger fraud detection measures would be the most significant improvement financial institutions could make. This sentiment is likely due to the fact that many Canadians have received suspected scam communications, with 44% of respondents stating a friend or family member had fallen victim to fraud in the past year—a 5% increase from the previous year.

Fraud-related concerns are not unique to Canada; they resonate globally. The FICO study found that an increasing number of consumers worldwide reported family and friends being victims of real-time payment scams last year. In North America, 47% of individuals said their family and friends were scammed, a figure comparable to the EU.

In regions such as Asia Pacific and Latin America, particularly countries like Brazil and India, fraud concerns are heightened due to the rapid adoption of instant payments. For instance, in Brazil, the number of respondents who reported a friend or family member being affected by instant payments fraud last year rose to 56%, while in Latin America, it reached 69%.

Fraud Challenges

Instant payment systems present unique challenges for fraud detection because account-to-account transfers are conducted swiftly and are often irreversible. This makes them attractive targets for criminals looking to exploit any available mechanism.

The global nature of these concerns is underscored by the fact that a growing number of consumers worldwide have reported family members or friends falling victim to real-time payment scams, highlighting the need for robust fraud prevention measures in financial institutions.

Benefits Outweigh

Despite the concerns over fraud, the benefits of instant payments outweigh their drawbacks. Real-time payment settlement allows users to have full clarity on their funds and can aid in making better financial decisions. This transparency is crucial for both consumers and businesses.

While the adoption of instant payments is likely to continue increasing, it’s important that financial institutions prioritize addressing consumer fraud concerns. According to the FICO study, 12% of respondents in Canada and 13% globally would switch banks if they were dissatisfied with their financial institution’s fraud detection and mitigation solutions.