What is the role of fraud scoring in Faster Payments?

Fraud scoring plays a critical role in the realm of Faster Payments by evaluating transactions against multiple risk indicators. This process involves analyzing various data points related to the transaction, such as the behavior of the payer, transaction history, and potential red flags that may suggest fraudulent activity. By scoring transactions based on these risk factors, financial institutions can make informed decisions about whether to approve, decline, or further investigate a transaction. The goal of fraud scoring is to enhance security, reduce losses from fraud, and protect both the consumers and the payment system while facilitating fast and efficient transaction processing.

In the context of Faster Payments, where the speed of transactions can make it challenging to detect and prevent fraud, effective fraud scoring is essential. It provides a mechanism to quickly assess potential risks before the completion of the transaction, helping to minimize the opportunity for fraudulent transactions to occur.