LSB has stressed the importance of preventing APP fraud in the first place, rather than just ensuring customers who suffer can be reimbursed – critical though that is. It notes that the increase in online and digital banking is creating new opportunities for payment methods but also new opportunities for criminals to target consumers through APP fraud.
LSB says effective warnings are key – and that the best warnings are dynamic and tailored to the payment journey. For example, warnings using calls to action give users a number of opportunities to defer or cancel transactions throughout the payment journey. LSB found the best measures were a mixture of risk-based and CTA warnings. The best measures kept customers engaged without negatively impacting the completion of legitimate payments.