Authorized Push Payment fraud—where criminals manipulate victims into willingly sending money—cost Americans over $8 billion in 2024. Unlike traditional fraud, customers authorize these transfers, creating a liability gray zone. The UK now mandates reimbursement for fraud victims (up to £85,000), and U.S. regulators are watching closely. Banks face a three-part challenge: detecting social engineering in real-time without blocking legitimate payments, determining liability when customers override warnings, and balancing protection with personal responsibility. This session examines behavioral analytics, friction-based interventions, effective customer education, and evolving liability frameworks.
