BNP Paribas partners with Worldline to reduce Iban fraud in SEPA direct debits

BNP Paribas Cash Management has chosen Worldline to reduce fraud in SEPA direct debit transfers. Fraud, whether for individuals or companies, is constantly evolving, forcing players to harden their systems against malicious cyber attacks.

FACTS

• BNP Paribas Cash Management has launched the Worldline solution, which combines the electronic signature of SEPA mandates (Worldline Payment Suite) with account verification based on Open Banking.

• SEPA Direct Debit (SDD) is an automated payment method used to pay single or recurring bills in a single euro payment area via a signed mandate.

• BNP Paribas Cash Management is the first company to integrate Worldline's account verification solution into a white label product called EasyCollect : 

  • EasyCollect's e-signature API enables online signature of SDD mandates. EasyCollect uses Open Banking to verify that the payer is the true owner of the IBAN used to sign the mandate.

  • The customer strongly authenticates himself with his bank and authorizes EasyCollect to automatically obtain an IBAN from his bank.

  • EasyCollect also provides a centralized database and an API to create and manage SEPA direct debits.

CHALLENGES 

• Reduce IBAN fraud: according to BNP Paribas Cash Management, the scheme is at the origin of more than 60% of fraudulent direct debits in recent years. The solution therefore aims to prevent the risk of fraudulent use of someone else's IBAN when signing mandates.

• To be a forerunner in IBAN fraud: BNP Paribas wants to position itself as a pioneer in this field and is preparing to set new standards in the implementation of SEPA direct debits.

• Offering companies secure payments while providing users with an enhanced customer experience: implementing existing SEPA mandates and EasyCollect direct debit solutions reduces the risk of SDD fraud and increases customer loyalty.

MARKET PERSPECTIVE

• According to a BlueSecure study, 2 out of 3 companies will be victims of IBAN fraud in 2021, and 25% of them will be victims of a proven fraud. Indeed, with the rise of remote work, attacks have become more sophisticated and are done through all channels. Whereas individuals used to be targeted, cybercriminals are now targeting organizations, with accounting departments being targeted first. This type of attack is a social engineering technique. In fact, cyber attackers are using more sophisticated means to get people to submit sensitive data or click on links to compromised websites.

• Until now, wire transfer fraud was "mostly seen" among businesses, according to the annual cybermalveillance.gouv.fr report. But since last year, officials have warned that the process "also affects many individuals" :

  • In 2022, 41,000 people accessed articles explaining how to protect themselves from this threat. A figure that has increased by 37% in one year.

• Recently, Mastercard and Cybermalveillance.gouv.fr launched the "Fraud Fight Club" initiative. This is a campaign against social engineering scams based on victim reports and social media analysis. Created by the Groupement d'Intérêt Bancaire, the Banque de France and several private companies, the event takes place on Instagram and is aimed at 25-35 year olds, to fight against cybercrime.