In her latest article, Anna Reitman delves into the looming threat facing the FedNow payment system, aptly termed “scamaggedon” by Uri Rivner, CEO of Refine Intelligence. Despite the rapid adoption of FedNow, which facilitates instant transfers up to $100k between US bank accounts, Rivner warns of a significant surge in fraud once the system reaches critical mass. Drawing on his extensive experience in financial crime, Rivner compares FedNow’s potential vulnerabilities to those experienced by Zelle, which saw an alarming 7% fraud rate at its inception.
Rivner stresses the importance of industry-wide collaboration and robust fraud controls to counteract the sophisticated tactics employed by modern criminals, such as deep fakes and generative AI.
For an in-depth look at the scope of the challenges facing FedNow, read the complete article by Anna Reitman here (subscription required).
