Considerations for Using Artificial Intelligence to Manage Authorized Push Payment (APP) Scams

Abstract—Artificial Intelligence (AI)-Based Security Intelligence Modelling can be used to prevent, detect, and manage cyber threats. Data-driven AI solutions are currently undergoing rigorous research and design in their own field, but few scholars or practitioners frame Authorised Push Payment (APP) Scams as a unique cybersecurity concern, or tailor technical solutions based on the local regulatory context. Drawing on a recent consultation publication by the UK Payment Systems Regulator on APP scams (November 2021), this paper shows how AI can be leveraged to manage APP scams and explores some of the opportunities and risks one should consider when adopting such an approach. We highlight three scenarios: 1) Liability on Payment Service Provider; 2) Liability on Payor; and 3) Liability on Payor with Substantial Public Sector Involvement. These examples illustrate how socio-technical systems can play a design role, and consequently assist industry leaders and engineering management in prioritizing investment focus, strategic approaches, and technical solutions.