Payment Systems

Can a Universal Payee ID Combat Fraud?

 

Tobias Baer tackles the issue of payment fraud, credit fraud, and money laundering and explains how the universal payee ID can reduce losses. He identifies how fraud schemes are enabled by and benefit from weaknesses in most banking and payment schemes around the world.

One of the most amazing aspects of working in many different countries is the realization that a few countries have the perfect solution for a problem that costs most other countries literally billions of dollars. One of these things is the universal payee ID. It could massively reduce payment fraud and credit fraud losses and seriously hinder money laundering.

As I’ve discussed in the past, today we face the problem that banks are very much left to their own devices in confirming the purported identity of a customer or counter party. This causes three big problems.

 

The problems and solutions identified in this article include:

  • Payment systems
  • Unique IDs
  • Biometric data collection

 

Read the full article, Why Covid-19 has shown that we need a universal payee ID now to combat fraud, on LinkedIn.