EBA CLEARING welcomes 50th active user of FPAD fraud-fighting functionality

EBA CLEARING announced today that its pan-European Fraud Pattern and Anomaly Detection (FPAD) functionality already counts 50 active users. FPAD has been available for RT1 and STEP2 users since March 2024, offering a wide range of real-time fraud-fighting tools based on fraud patterns and anomalies that can be identified at network level. The speedy uptake of the functionality demonstrates both the value provided by the functionality and how easily it can be integrated by users.   

FPAD supports payment service providers (PSPs) in fighting fraud at two different points in the life cycle of a payment: during payment initiation (fraud prevention) and after transactions have settled (fraud detection). FPAD already provides a comprehensive IBAN/name matching solution, which will be complemented with Verification of Payee functionality, as required by the Instant Payments Regulation, all across SEPA starting from December 2024.

With the integration of FPAD, PSPs can improve their fraud detection rates, create efficiency savings and reduce fraud losses whilst minimising friction for their customers. EBA CLEARING constantly improves FPAD models in consultation with its user community to capture new or evolving fraud scenarios and further enhance the quality of its network-based insights. 

Erwin Kulk, Head of Service Development and Management at EBA CLEARING, said:

“Our users have started to incorporate FPAD both into their manual and automated processes. It is great to see that FPAD integrates so well with the users’ existing anti-fraud tools and that the flexibility to embrace the functionality early on and at their own pace is paying off for them. We will continue our efforts to get everybody on board and further fine-tune and improve the functionality according to our users’ needs. With this, we can help our users to further strengthen their investigation, decision-making and case resolution processes, so they are ready for the new instant payments reality.”

Michele Olin, Chairperson of the EBA CLEARING Board, said:

“For PSPs that are on their instant payments implementation journey, one key challenge is getting their anti-fraud tools up to speed. FPAD can help PSPs to enhance their fraud defences, thanks to its broad range of real-time fraud fighting capabilities. Given the tight regulatory deadlines, FPAD’s alignment with the VOP Scheme is an extra plus.”  

Christof Hofmann, Global Head of Corporate Cash Management (CCM), Deutsche Bank, said:

“The beneficiary is the blind spot for every originator PSP. With FPAD, PSPs throughout SEPA have joined forces to enhance their view on transaction and beneficiary risk based on the network view provided by the RT1 and STEP2 Services of EBA CLEARING. This will make a difference not only for our fraud risk management, but for the service we can offer to our clients as well. For Verification of Payee, in particular, FPAD will offer a comprehensive solution with a pan-European scope.”

Fabio Ugoste, Head of Cybersecurity and Business Continuity Management, Intesa Sanpaolo, said:

“FPAD can become a real game changer for fighting fraud and minimising unnecessary friction, in particular in the context of instant payments. This has been very obvious for Intesa Sanpaolo, as we have been involved from day one in the design of this solution developed by and for fraud fighters in SEPA. That’s why we have now integrated key indicators directly into our anti-fraud systems. We look forward to seeing the improvements this will bring to our fraud prevention rates and are excited to further evolve the functionality.”

EBA CLEARING’s FPAD functionality was developed in 2023 with the support of fraud experts from participant institutions across Europe, following the release of a blueprint and subsequent RT1 and STEP2 user consultation in Q4 2022. STEP2 and RT1 are pan-European retail payment systems processing SEPA Credit Transfers and Direct Debits (STEP2) and SEPA Instant Credit Transfers (RT1) respectively. Both systems are owned and operated by EBA CLEARING, a European-owned, European-governed, and European-regulated financial market infrastructure provider.