structured with certain data restricted to specific fields. This enables artificial intelligence to detect payment anomalies that could indicate fraud or financial crimes. Additional FedNow Service Mitigation Tools The FedNow Service includes additional tools for financial institutions to combat fraud, including: ▶ the ability to establish risk-based transaction value limits; ▶ the ability to specify conditions under which transactions would be rejected, such as by account number (i.e., a “negative list”); ▶ message signing to validate that message contents have not been altered or modified; and ▶ reporting features and functionality, including reports on how many payment messages were rejected based on a participating financial institution’s settings. The Federal Reserve is exploring other features like value limits that could be tailored to certain uses, aggregate value, or volume limits for specific periods (for example, per business day), and/or centralized monitoring performed by the FedNow Service, such as functionality that leverages advanced statistical methods and historical patterns to identify potentially fraudulent payments. Do faster payments automatically lead to faster fraud? Not yet, likely because of the risk mitigation controls financial institutions and their vendors put in place and other built-in risk mitigation measures within the FedNow Service. But don’t become complacent – continue evolving your fraud prevention practices, including educating your customers on how to spot would-be fraudsters from duping them into making instant payments. Peter Glick Senior Vice President, Midwest Regional Manager PCBB PGlick@PCBB.com Peter Glick has over 25 years of experience at financial institutions and finance-related services companies. In his current role, he helps community financial institutions operate safely, soundly and competitively, while meeting their clients’ needs. Glick earned his bachelor’s degree from American University and an MBA from the University of Chicago. PCBB is an associate member of the Indiana Bankers Association. Michael A. Renninger Principal (317) 695-7939 mrenninger@renningerllc.com Securities offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Road Davenport, IA, 52807 (563)326-2064 Member: FINRA, SIPC. Renninger & Associates, LLC and Ausdal Financial Partners, Inc. are independently owned and operated. www.renningerllc.com "For an ObjecƟve Assessment of Your Challenges and Professional ExecuƟon of Your OpportuniƟes" Buy-Side and Sell-side Representa�on involving whole banks, branches, and non-bank affiliates Stock Valua�ons and Fairness Opinions CPA-trained and CFO-experienced Indiana professionals serving Indiana banks. Our services include: SEPTEMBER/OCTOBER 2024 19 With over three decades of serving lenders and millions of flood certificates issued, why trust just any certification provider when you could hire what many would consider the industry leader in accuracy and customer care. SINCE 1991 Craig callahan | 800.945.0246 ccallahan@floodplain.com Ask craig how to experience the Fci difference risk free and learn more about why so many lenders trust floodplain consultants. a preferred vendor of the iba
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