Surveying the payments landscape, the emergence of digital risk concepts, and their impact to fraud mitigation

The financial services communities, including financial institutions that offer banking services and government agencies that facilitate government benefits, have embraced the use of innovative technology. While innovation provides a surplus of convenient tools for consumers who demand new devices, products, and capabilities, it also significantly impacts internal risk operations. This evaluation and assessment highlights the importance of protecting consumer information given the escalation of breaches in the past several years, reviews several digital concepts that meet consumer expectations, and presents safer ways for risk departments to facilitate consumer transactions. This paper helps the reader understand how over time the changing payments landscape introduced digital concepts that drive market competition but weigh heavily on risk functions. The findings reveal that consumer banking relationships are built on trust and have prioritized industry challenges to balance opportune levels of monetary loss while simultaneously safeguarding consumers and the mechanisms they use to exchange money. Risk management departments are recommended to use this evaluation to reorganize internal frameworks that are intended to optimally prevent, detect, respond, and report criminal activity. The paper arrives at the conclusion that collaboration across the industry, including cooperation between financial institutions and the U.S. government, is needed in order to retain the growth of commerce and foster practical ways to stay ahead of criminals who seek to profit illegally. Lastly, this paper presents useful strategies for risk divisions amidst a digital environment, including building flexible structures that operate in more centralized ways.