ORLANDO, FL – BAFT (Bankers Association for Finance and Trade) today announced the release of its latest white paper, “Best Practices in Mitigating Fraud in Transaction Banking,” offering financial institutions practical, industry-driven guidance to address the rapidly evolving fraud landscape across payments, trade finance, and client onboarding.
As transaction banking becomes increasingly digital, real-time, and interconnected, fraud schemes are growing in sophistication and scale. The paper explores how emerging trends, including instant payments, digital onboarding, and AI-enabled social engineering, are reshaping risk, while highlighting actionable strategies to strengthen prevention, detection, and response capabilities.
Developed by BAFT’s Working Group on Fraud Mitigation, the white paper provides a comprehensive framework for financial institutions to manage fraud risk across the full lifecycle. It also underscores the growing convergence between fraud, anti-money laundering (AML), and sanctions risks, and the need for integrated, cross-functional approaches to risk management.
“Fraud is no longer a siloed risk—it is increasingly interconnected with broader financial crime threats and amplified by technological advancements,” said Deepa Sinha, SVP for Payments and Financial Crimes. “This paper provides practical guidance to help banks strengthen resilience while maintaining efficiency and client trust in a rapidly changing environment.”
The white paper also emphasizes the importance of collaboration and information sharing, including public-private partnerships and cross-border coordination, as essential tools in combating fraud at scale.
Key highlights of the white paper include:
- An overview of evolving fraud typologies, including authorized push payment (APP) fraud, account takeover, synthetic identity fraud, mule networks, and trade document fraud
- Analysis of emerging risk drivers such as instant payments, digital onboarding, and AI-driven fraud techniques
- A practical control framework covering prevention, real-time detection, investigation, and response
- Insights into the convergence of fraud, AML, and sanctions risks
- Best practices for collaboration, data sharing, and cross-border coordination
- Real-world case studies and key fraud indicators, particularly in trade finance
The publication is part of BAFT’s ongoing efforts to support the global transaction banking community in navigating emerging risks and advancing safe, efficient, and resilient financial systems.
The full white paper is available here: Download Paper HERE
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About BAFT (Bankers Association for Finance and Trade)
BAFT is the leading global industry association for international transaction banking. Bringing together financial institutions, service providers, and the regulatory community, BAFT provides thought leadership, advocacy, education, and a platform for collaboration to promote sound financial practices that foster innovation, efficiency, and commercial growth. The association engages in a broad range of issues affecting transaction banking, including trade finance, payments, and compliance, helping members navigate a rapidly evolving global landscape. For more information about BAFT, visit baft.org, or follow BAFT on X (Formally Twitter), LinkedIn, and YouTube.