Webinar Recap: Payments Risk Amid Digital Innovation

This article was first published by Dow Jones Risk and Compliance in March 2025.

As digital payment adoption accelerates worldwide, the industry is navigating an increasingly complex landscape of cyber threats, regulatory demands, and operational challenges. In a recent Dow Jones webinar, Nicholas Elliot, Dow Jones Head of Communities, Risk & Research, together with DLA Piper partner, Sophie Lessar, offered valuable insights into the evolving risk environment facing payment firms.

Watch the recent webinar on "Payments Risk Amid Digital Innovation". This webinar provides actionable insights for the payments sector based on Dow Jones monthly Risk Research Report. 

Cybersecurity: A Growing Threat

The digitisation of payments—both consumer and B2B—has significantly expanded the attack surface for cybercriminals. As highlighted in Dow Jones report and discussed during the webinar, payment providers face increasingly sophisticated threats that demand proactive cybersecurity strategies. Regulatory developments, such as the EU’s Digital Operational Resilience Act, are intensifying scrutiny on supply chains, audit processes, and governance, adding to the complexity of risk management. Payment firms must navigate these evolving threats while balancing risk mitigation with demonstrable compliance—an approach regulators aim to strengthen in order to foster customer trust.

The Rise of APP Fraud

A key concern is the surge in authorised push payment (APP) fraud, where individuals are tricked into authorising payments under false pretences. Sophie Lessar pointed to regulatory frameworks, particularly in the UK, that now mandate reimbursement and force firms to enhance infrastructure and monitoring. “It’s both a compliance challenge and a reputational opportunity,” she said, highlighting that demonstrating robust controls can strengthen consumer confidence.

Navigating Regulatory Complexity

While regulation aims to protect consumers and markets, it can also constrain innovation. Our survey revealed that 73% of payment companies view regulation as a barrier. Sophie Lessar acknowledged this tension, citing the difficulty in applying legacy rules to rapidly evolving products and the challenge of aligning compliance frameworks across multiple jurisdictions.

Instant Payments: Lessons from the UK

As the EU implements its instant payments regulation, the UK’s earlier adoption of faster payments was both a precedent and a learning opportunity. It underscores the importance of accuracy, recourse frameworks for misdirected payments, and continuous adaptation of compliance programs.

Evolving Compliance with AI Capabilities

Artificial intelligence represents both risk and opportunity. Emerging concerns around misuse of data, regulatory uncertainty, and the need for proactive governance were prevalent during the discussion as was AI's potential in fraud monitoring and risk detection. As digital payments continue their rapid growth trajectory, risk management and regulatory foresight will be pivotal. Payment companies must balance innovation with robust governance, constantly evolving their compliance frameworks to match the speed of change.

For further insights, read the full Payments Risk Report from Dow Jones Risk & Research here. To learn more about Dow Jones Risk & Research explore their solutions and speak to a member of their Risk & Compliance team.