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That is the risk if you trade in commodities that are used to launder money, you could see it as reselling stolen goods. So these traders/services should be very carefull in accepting clients. If they cannot freeze or recover they should be held respnsible for the losses.

It was about to be time!!

Mr. Macek, states that "the client" demands delivery of sevices like instant payments in seconds. This seems logic for normal sales activities where shopkeepers and internet salesman want to have immediate payment for their goods and services, but it is very doubtful for international paymenst of larger sums of money (like thousands of dollars)  that are internationally transfered immediately without any contractual basis. This seems to be used mainly by criminal clients and is clearly not the demand of normal clienst that only can be robbed because of this  kind of (irrevocable) transfers in seconds.

Dear Kethamaran,  I may agree when the fraud would be a simple fraud where you make a payment and dont get delivered , but the article is not covering the features behind the APP , which ususally go beyond a not delivered good or service. That is the practice that , criminals use the features of the banking payment system either to break into the payment (to change its outcome) or  to create falsified payment environments to steal the codes of clients  that can be used to rip off the accounts of these clients. In this area the reponsibility of banks is far greater. I hope you agree

Dear David, I hope you understand that the scams we  are talking about, are not comparabe with normal scams where people talk money out of your wallet. Wallets which in most cases will not contain all of your money. I think we should all look at the Swedish model because it gives the right incentives to the banks to look how they can make their system more resilient also in an age of social engineered real time payments and scams. Scams that use the weak spots of the banking systems and the way clienst use these systems. This is not only about better encryption but about an eye for the interaction of social engineering and the client system interface  plus brainstorming on the potential steps of cybercriminals to break into this. The beauty of the Swedish systems is that it places the largest burden on the banks who have the best opportunity to make their own systems more safe but also assumes some responsibilty of the clients(own risk) and also fights any fraudulant actions of customers with ill will.

Dear Ketharaman ,You remarked " (a) Nobody forced the Payor to use Faster Payments (b) Payor transferred the money to whoever out of their own free will and volition." This is not true with the regular internet scams that take place. It is known that scammers ask for small payments on (copied and real) screens of the banks (which indeed sometimes are made voluntarily, but also under threat of destroying your pc) and  that the scammers seem to have possibilities to change the amount and the accountnumber where the money goes to. So it is not regular fraude but fraude using the sytem for payment created by the bank. Moreover the cammers also use the codes that they steal for small paymenst not just to higher one payment but also to rip saving accounts connected to the payment account and also the security settings that client put in. This is because many banks use the same safety procedure for normal payments as well as for the change of safety settings (also almost real time). This is a systemic fault of the bannks , which tenfolds the damage in ordinary scams that already take place for 15 or 16 years and has everything to do with the attempts of the banks to create the real time tranfers world,without asking clienst if they want this.

Dear Kethamaran, the "he said, she said" situation should lead to a slow down or freezing of payment usually people go to the police if they get frauded. At the moment it is free play for crimials who can get their money intstantaneously while the victim is helpless. In the Netherlands there are now many cases where private bank accounts were ripped for several ten thousands of Euros each(by so called Microsoftscams) . In some case the money first was transferred to english accounts and than dissolved through fast payments. The bank feels sorry but places the full risk on the victirms that never asked for fast payments procedures espacially not with these high amounts to fraudsters. 

The increase of succeeded fraudes with large amounts that cannot be retrieved after the crime has taken place ,has much to do with the endeavour to persuade all banks to introduce the faster (real) time payments , for which the banks seem not to have found out what applications and services they may connect to this faster payments (see next finextra mail). Fraudsters and money laundriers found out the comfort of this innovation of real time payments as soon as it was introduced. So we can expect more and more it is the duty of banks to resolve this, unfortunaltely we will all have to pay our share either as customers, share holder and perhaps tax payers.

Well, while banks, have to think about applications for real time payments, criminals already found out. They use it to laundry their money in an intsant in an way that money becoems not rerievable. Real time payment would be okay if you can also retrieve stolen money in real time . Unfortunately stolen and frauded money can disappear real time, the same when you mistake the addressed account number. So as customer I would say slowdown, or find ways to retrieve stolen money real time. I do not need realtime fast services and applications if the risk is that all my money gets stolen while the "fast bank" wil neither refund nor get my money back.

Hope it is safer as their own ING platform