In an op-ed appearing in American Banker on March 15, 2023, Carla Sanchez-Adams calls for clear, uniform P2P fraud protections to level the playing field between payment systems that keep fraud to low levels and those that don’t.
“When consumers are not forced to bear the devastating burden of fraud that occurs through faster payment systems, everyone benefits.”
Carla Sanchez-Adams, senior attorney at the National Consumer Law Center
On the sending end, payment systems have an important role to play in preventing consumers from being deceived by fraudsters. Having more responsibility to address fraud will ensure that providers implement the most effective prevention tools aimed at consumers, such as in-app messages and speed bumps, Sanchez-Adams writes. But the most overlooked place to prevent fraud is through the accounts that fraudsters use to receive fraudulent payments.
“If financial institutions are required to reimburse consumers for the harm faster payment systems allow fraudulent actors to commit, they will devote equal efforts to preventing fraudsters from opening or using accounts unlawfully to receive consumers’ money.”
Carla Sanchez-Adams, senior attorney at the National Consumer Law Center
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