FinTech Magazine September 2019 | Page 52

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52 payments makes the risk of loss different than with other types of transactions . Once a real-time payment has been accepted by the payee ’ s financial institution , the transaction is often considered irrevocable , which makes fraud detection and prevention even more important .
While real-time payments are applicable across a broad range of transactions , fraud detection systems have historically been designed for a specific type of transaction , such as card

‘ Securing real-time payments requires more than simply deploying the same risk management and fraud prevention solutions faster ’ payments . This siloed approach can limit fraud detection , and is not necessarily the best approach for real-time payments . Effective real-time payment fraud prevention requires solutions able to detect many possible types of fraud across all channels and payment origination mechanisms .

Ideally , these solutions should be fully connected and able to utilise data across payment types and channels to help analyse , predict and prevent fraud . As threats continue to evolve and increase in number , financial institutions cannot afford to implement fraud prevention tools in a piecemeal fashion . Technology partners should be pressed to deliver holistic and integrated payments and fraud solutions that enable financial institutions to take advantage of real-time payments without being taken advantage of by fraudsters .
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With ISO 20022 message sets being adopted as the new industry standard for electronic data exchange between financial institutions , real-time payments are able to carry much more
SEPTEMBER 2019