Overview

What is FPAD?

Fraud Pattern and Anomaly Detection (FPAD) is a pan-European fraud-fighting functionality, which generates insights based on a network view of SEPA payments. It is accessible to STEP2 and RT1 Participants and gives them a wide range of real-time fraud indicators.

What does FPAD do?

FPAD complements payment service providers' (PSPs) existing fraud controls by providing account assessments, transaction assessments and investigation capabilities based on network-wide intelligence drawn from more than nine billion transactions across EBA CLEARING’s SEPA services. FPAD can be used in real time: network risk indicators are returned in milliseconds.

How does FPAD complement other fraud fighting solutions?

FPAD complements PSPs’ internal fraud detection and prevention systems by adding a network view. PSPs can incorporate FPAD’s network risk indicators alongside indicators based on their own customer data, behavioural analytics, device intelligence and machine learning models. With FPAD, PSPs can see beyond their own customers and transactions, identify patterns that would otherwise remain undetected and assess fraud risks based on the whole picture. The result are higher fraud detection rates, efficiency savings and lower fraud losses.

How does FPAD help PSPs meet the requirements of the Payment Services Regulation (PSR)?

The upcoming PSR requires PSPs to monitor incoming and outgoing transactions in real time, taking into account historical transactions, to detect and prevent fraud. For this purpose, it obliges them to exchange data with each other. FPAD enables real-time transaction monitoring for its SEPA payment systems at pan-European scale. PSPs can also leverage FPAD as an information-sharing arrangement under the PSR because it generates a network view based on the analysis of both passive and active feeds received from PSPs.

Moreover, FPAD is a collaboratively developed, user-driven solution and will continue to evolve alongside regulatory requirements.

For more information on how FPAD will support European PSPs’ fraud fighting capabilities and compliance with the PSR requirements, read our white paper, Real-time transaction monitoring: The future of fraud fighting

 

Contact us if you would like to know more about joining FPAD.