Overview

Fraud Pattern and Anomaly Detection (FPAD) is a fraud-fighting functionality, which gives STEP2-T and RT1 Participants access to a wide range of real-time fraud prevention and detection tools. FPAD detects fraud patterns and anomalies in the SEPA credit transfer services of EBA CLEARING. FPAD also provides payment service providers (PSPs) with a Verification of Payee (VOP) function, allowing them to meet the requirements of the EU Instant Payments Regulation. FPAD and its VOP function are integral parts of the STEP2 SCT and RT1 SCT Inst Services and can be directly used by participants in these services.

FPAD helps PSPs tackle the growing challenge of payment fraud across Europe. Payment fraud undermines end-customer trust, creates unnecessary costs and increases reputational risks. PSPs and their customers pay the cost of fraud both directly, in terms of fraud losses, and indirectly, through costs associated with fraud detection, prevention and recovery.

With the integration of FPAD, PSPs can improve their fraud detection rates, create efficiency savings and reduce fraud losses. EBA CLEARING constantly improves FPAD models in consultation with the FPAD Expert Group to capture new or evolving fraud scenarios and better support users in their investigation, decision making and case resolution processes.

FPAD supports PSPs in fighting fraud at two different points in the life cycle of a payment:

1. During payment initiation (fraud prevention)
2. After transactions settle (fraud detection)

Learn more about FPAD Verification of Payee