Enhancing Security in Digital Banking: IAM Solutions for Combating APP Fraud

Challenger digital banks are rapidly gaining popularity due to their convenience and agility in handling multi-currency transactions. However, this rise in digital banking also opens the door to increased cyber threats, particularly authorized push payment (APP) fraud, where attackers deceive customers into transferring funds to fraudulent accounts. With APP fraud expected to reach $6.8 billion by 2027, challenger banks must take proactive steps to protect their customers and operations from financial crime.

Revolut, with over 45 million customers globally, has recently faced a surge in APP fraud reports, highlighting the challenges digital-only banks have to deal with in balancing security with innovation. Without the traditional controls of physical locations and in-person verification, these institutions are particularly vulnerable. By leveraging advanced identity and access management (IAM) solutions, digital banks can strengthen their security. Key strategies include token-based architectures, adaptive authentication, and FAPI certification, which help safeguard customer data and prevent unauthorized access.

As digital banking continues to evolve, so do the threats. IAM solutions designed for scalability, flexibility, and ease of use are essential for meeting customer demands and staying ahead of cybercriminals. With the right IAM platform, digital banks can not only address current risks but also future-proof their security to handle emerging challenges.

Read the full article here to learn more about how IAM&CIAM solutions are defending digital banks against cybercrime.