Dal Sahota, Global Director of Trusted Payments, LSEG Risk Intelligence
Dal Sahota, Global Director of Trusted Payments at LSEG Risk Intelligence, discussed the fast-evolving payments landscape and the industry’s fight against fraud.
The conversation began with the growing importance of interoperability in payments. Dal explained that today there are more ways to pay than ever before whether by bank transfer, card, or through newer models like Buy Now, Pay Later. While this variety brings convenience, it also creates complexity. Interoperability, he noted, isn’t just about connecting different payment rails; it’s about ensuring that speed, security, and safety remain consistent across all payment methods. Dal highlighted India’s UPI scheme as a shining example of how thoughtful design and innovation can expand financial inclusion, bringing millions of previously unbanked people into the digital economy through simple tools like QR code-based payments.
The discussion then turned to regulation and the growing focus on combating Authorised Push Payment (APP) fraud. Dal reflected on how, since 9/11, AML (Anti-Money Laundering) regulation has dominated financial crime policy, often leaving fraud legislation to play catch-up. Much of today’s regulatory framework was designed for a pre-digital world, and Dal believes that new rules are urgently needed to reflect the realities of modern payments.
He also noted that APP fraud is no longer confined to the banking sector. While banks and fintechs are natural targets, APP fraud has now spread widely across the corporate world. The sheer number of businesses transacting digitally makes this a broad and growing risk.
Looking to the future, Dal expects regulation to take an increasingly central role in tackling fraud, with both public and private sector players working more closely together. He referenced a recent forum at the Financial Stability Board, where global stakeholders came together to discuss cross-border payment risks and solutions. Faster payments, particularly across borders, are undoubtedly here to stay, but Dal cautioned that speed must not come at the expense of safety. He shared an unsettling example where the rapid adoption of faster payments had been linked to an increase in kidnapping-related crimes in one market, demonstrating how criminals can exploit these systems if appropriate safeguards are not in place.
To truly get ahead of fraudsters, who are now harnessing AI and becoming ever more sophisticated, Dal stressed the need for a collective industry approach. Data sharing, even between competitors, will be vital. He hopes to see evolving data privacy frameworks that enable more effective prevention of APP fraud without compromising individuals’ rights. Drawing a parallel to the UK’s Neighbourhood Watch initiative from the 1970s and 80s, Dal called for the same spirit of community and collaboration to be brought into the digital payments space today.
Emilie Mathieu, General Counsel, Checkout.com
Emilie Mathieu, General Counsel at Checkout.com explores how evolving regulation and the fight against fraud are shaping the future of payments. She began by noting that while regulation plays a vital role in bringing legitimacy to the payments space, it can also struggle to keep pace with industry innovation. “There’s a huge time lag between when legislation comes out and when it gets implemented,” she explained, adding that new market entrants often face practical hurdles, such as banks’ unwillingness to provide services, despite the existence of licensing frameworks like open banking. The forthcoming third Payment Services Directive (PSD3) is attempting to address this by widening the regulatory net to include service providers, encouraging more alignment across the ecosystem.
Mathieu shared that when regulation leaves room for innovation, it works best. The idea that every transaction required authentication would have crippled subscription models and frictionless online payments. Thanks to ongoing dialogue between regulators and industry, more pragmatic exemptions have since been introduced. Similarly, she praised the shift in PSD3’s approach to safeguarding consumer funds, moving away from a rigid, insurance-based model that proved unworkable in practice toward a more resilient banking model using multiple safeguarding accounts.
Turning to fraud, Mathieu was unequivocal: “Fraud is absolutely an existential challenge.” It not only erodes consumer trust but also damages brand reputation and bottom-line performance. Checkout.com’s own research showed that 37% of consumers report that a slow or failed payment negatively impacts their perception of both the merchant and the payment service provider. Performance is therefore critical, and Mathieu stressed the importance of maximising acceptance rates, letting through genuine transactions while blocking fraudulent ones. Fraud is rising fast, with 40% of British consumers having experienced it. Checkout.com counters this by using finely tuned fraud strategies tailored to each client’s sector and geography, helping global merchants from eBay to Tiffany’s deliver seamless, secure experiences.
Looking ahead, Mathieu highlighted three key trends that will define the future of payments. First, a renewed focus on local payment systems. While global mechanisms remain important, regulators and merchants increasingly value local resiliency, as seen in discussions around a European payments network and the success of systems like Pix in Brazil. Second, she expects greater convergence between payments, digital identity, and financial data, where PSPs are well positioned to lead given their deep consumer insights and trusted role in transactions. Finally, performance will remain paramount in an ultra-competitive market. “Everyone is fighting for every single bit of margin,” she observed, adding that superior payment performance benefits consumers, merchants, and regulators alike.
Ivan Stefanov, CEO, Noto
Ivan Stefanov, CEO of Noto, discussed the evolving landscape of fraud prevention in global payments. Noto, a 360 enterprise financial crime management platform, provides solutions spanning both AML compliance and fraud prevention.
As global payment fraud continues to rise, Ivan highlighted several pressing concerns shaping the industry. Scams, phishing attacks, and deepfakes are driving new challenges, particularly within ID verification and self-matching technologies. He noted the complex relationship between Authorised Push Payment (APP) fraud and scams. According to Ivan, these two often overlap: what is initially reported as APP fraud is frequently the result of carefully orchestrated scams, where victims are misled into authorising payments under false pretences. This grey area makes investigations increasingly difficult.
When it comes to effectively tackling fraud, Ivan emphasised the importance of a multi-layered approach, beginning with a clear understanding of one’s risk exposure. Conducting a proper risk assessment and defining a clear strategy are crucial first steps. This strategy should incorporate baseline measures such as user limits and transaction caps, along with robust transaction monitoring and analytics to continuously assess effectiveness. There is no one-size-fits-all solution or silver bullet, he explained; success requires consistent and ongoing effort across several layers of defence.
Balancing friction with convenience remains a core challenge. Ivan warned that organisations often misunderstand the true cost of fraud. It’s not just about losses through chargebacks and reversals but also about evaluating the opportunity cost of false declines. Many businesses overestimate the potential revenue lost due to fraud controls, not recognising that genuine customers typically retry their purchase. Drawing from past experience, Ivan wryly shared that he had at times been referred to as the “business prevention department” rather than fraud prevention, underscoring the tension between revenue teams and fraud teams. To strike the right balance, organisations must closely monitor their key metrics and KPIs, adjusting strategies based on data-driven insights rather than assumptions.
Turning to the role of AI and machine learning in fraud prevention, Ivan explained that while machine learning has been a key part of fraud prevention for years, recent advancements now enable more complex models that operate at incredible speed. In addition, emerging AI agents are beginning to support fraud analysts by summarising content and providing deeper insights into cases. Though AI presents exciting opportunities to streamline workflows, Ivan cautioned that reliance on such tools might dull analysts’ instincts over time. Nonetheless, it represents a natural evolution of the industry.
Looking ahead, Ivan identified several upcoming regulatory developments that will impact the space. In October, the SEPA Instant Payments mandate will take full effect, requiring all participating banks and PSPs to offer instant in-and-out SEPA payments. While this will enhance convenience, it also increases fraud risk, as instant payments are irreversible once processed.
Samina Hussain-Letch, Executive Director, UK, Square
Samina Hussain-Letch, Executive Director, UK at Square, shared her insights on the latest innovations in payments and the evolving landscape of fraud prevention. Samina highlighted three key areas driving excitement in the industry: the deeper integration of payments into software, the growing use of AI, and the evolution of credit access. Square, she explained, has long been at the forefront of embedding payments into broader business solutions, enabling sellers to manage inventory, staff, and marketing through a unified platform. The company’s recent launch of Project Goose, an open-source AI agent, is further enhancing productivity internally and for sellers. Samina also noted significant developments in credit accessibility through Block’s ecosystem—Square, Cash App, and Afterpay-aiming to reach those traditionally underserved by financial services.
When it comes to fraud prevention, the same rich data that powers Square’s lending decisions also helps spot and mitigate fraud in real time. Integrated insights from both payment and software usage allow Square to detect anomalies, such as sudden shifts to online payments or unusual refund activity. This layered approach is critical for small businesses, which often lack the resources to manage fraud independently. Square’s solutions are designed to operate seamlessly in the background, with features like a risk order delay tool that flags suspicious transactions and empowers sellers to make informed decisions. Samina recounted a case where this tool saved a London florist £3,000.
The conversation also touched on the fast-evolving nature of fraud, with deep fakes and identity-based attacks now firmly on the radar. Square takes an ecosystem-wide view of fraud prevention, monitoring patterns across payments, software, and financial services to act swiftly.
On regulation, Samina acknowledged Europe’s leadership in areas like PSD2 and strong customer authentication but stressed the need for greater proportionality. She argued that highly regulated environments can sometimes introduce unnecessary friction, particularly for payment-focused companies like Square compared to full-service banks. Advocating for a balanced approach, she emphasised that fostering innovation and enabling swift product development is crucial to supporting small businesses and driving broader economic growth.
Gus Tomlinson, Managing Director of Identity Fraud, GBG
Gus Tomlinson, Managing Director of Identity Fraud at GBG, offered valuable insights into the evolving world of fraud prevention. Gus explained the longstanding relationship between GBG and LSEG, with LSEG providing critical international data that enhances GBG’s ability to verify individuals accurately through its Go platform. One of the highlights of the event was a fireside chat Gus hosted with a former fraudster, providing a rare glimpse into the mindset of criminals. The key takeaway from this session was the sheer determination and adaptability of fraudsters, who quickly exploit new technologies and opportunities. Understanding this psychology is crucial when designing defences-not only by embedding robust technical safeguards but also by educating consumers to recognise social engineering tactics and pause when something feels off.
Among the most concerning trends, Gus pointed to the rapid rise of deepfakes and AI-driven fraud. He highlighted how easily accessible these sophisticated tools have become, enabling large-scale attacks that were unimaginable just a few years ago. The pace of change has accelerated dramatically, shrinking innovation cycles from five years to as little as 18–24 months. When asked about underestimated threats, Gus cited synthetic identity fraud as a particularly worrying area. These silent, long-undetected attacks-common in the US and now spreading across Europe-are growing more sophisticated with AI-generated identities that look and sound entirely real.
Despite the increasing complexity of fraud, Gus stressed that it remains preventable. Success depends on working with experts, adopting flexible technologies that can quickly adapt to emerging threats, and maintaining a fraud strategy that is dynamic and continuously evolving. Without this agile approach, organisations risk falling behind in an increasingly sophisticated battle against identity fraud.
Martin Parzonka, VP of Product, PensionBee
Martin Parzonka, VP of Product at PensionBee, spoke about how Wealthtech is helping to transform consumer engagement with pensions, an area historically plagued by complexity and a lack of transparency. In an era where instant access to financial information is the norm, Martin highlighted PensionBee’s mission to make pensions more accessible and understandable through financial literacy and transparency. Rather than instant withdrawals-which are not possible with pensions-the goal is to offer real-time visibility into pension balances and performance, replacing outdated paper statements and jargon-heavy documents. Martin stressed the importance of simplifying the pension experience so consumers can confidently plan for their future, using relatable analogies to convey how lifestyle choices today impact retirement outcomes.
On the topic of fraud, Martin underscored the responsibility PensionBee carries in safeguarding customers’ lifetime savings. The priority is ensuring that withdrawal requests are made by the rightful individual, achieved through robust KYC and AML processes, facial similarity checks, biometrics, and bank account verification-all designed to minimise friction while maintaining security. Martin also shared his enthusiasm for AI and machine learning in the pension space, particularly their potential to help close the financial advice gap. He noted that large language models, like ChatGPT, can serve as pseudo-financial planners by providing guidance based on users’ financial profiles-though he acknowledged the need to balance innovation with data privacy concerns. Regulatory developments are also top of mind, with Martin pointing to the FCA’s review of the advice-guidance boundary as a crucial opportunity to offer consumers more targeted guidance without crossing into regulated advice. Ultimately, PensionBee’s vision is to empower more people to save effectively for a happy retirement, supported by smarter technology and clearer, more accessible information.
