The Art of Assessing Customer Intent: Authorized Party Fraud Trends

Federal Reserve

"Fraud deliberately committed by customers, sometimes referred to as first-party fraud, is a growing concern. Fraudulent behavior, such as false claims, misuse of payment channels or money mule activity, may resemble normal behavior. This often makes it difficult for financial institutions to distinguish fraudulent intent from routine activity. As customer intent becomes harder to interpret, a multi-layered approach across the customer lifecycle is essential, starting with onboarding."