Fraud Pattern and Anomaly Detection (FPAD)

Pan-European payment fraud is a growing challenge for payment service providers (PSPs). It 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.

Fraud Pattern and Anomaly Detection (FPAD) is a value-adding functionality delivered as part of the STEP2-T and RT1 Services. It helps PSPs to combat fraud, improving the overall safety of SEPA Credit Transfers (SCT) and Instant Credit Transfers (SCT Inst).

FPAD analyses all SCT and SCT Inst transactions to create a centralised network view of payment risk. It provides a common analytical infrastructure that supports functionality for fraud prevention, fraud detection and fraud intelligence.

The prevention modules allow PSPs to assess the risks of accounts and transactions before payments are made and to validate account details with an IBAN/name check. The detection modules allow PSPs to perform post-transaction investigation of payment risks. PSPs can select the FPAD modules they want to use. They can integrate these modules into their existing fraud prevention tools and payment processes, and flexibly consume the resulting data.

FPAD does not stop payments, nor does it change the payment flows for SCT and SCT Inst transactions sent to STEP2 or RT1. It rather complements what PSPs do today to combat fraud and leaves them to make the final decisions on risk assessment outcomes.