PAYMENTS
Fraud prevention in the age of 10-second transfers Traditional fraud prevention looks quaint in the instant payments era. Banks spent decades building elaborate post-transaction monitoring systems, analysing patterns over hours or days to spot suspicious activity. With 10-second settlement windows, that approach has become obsolete.
The technological response involves deploying machine learning models that can assess risk in milliseconds.
Top-tier institutions are integrating behavioural biometrics to detect unusual user patterns, alongside dynamic scoring engines that adjust based on live context. These systems run at the network edge to eliminate processing delays entirely.
Irene Skrynova, Chief Customer Officer at Unlimit, explains the transformation:“ The nearly instant settlement window dictates a paradigm shift in risk management. Traditional post-transaction screening is obsolete; the new standard is AI-driven, preemptive fraud prevention.”
Machine learning models now make instant go-or-no-go decisions at the transaction layer, often processing logic directly on payment gateways or even user devices.
But regulatory frameworks haven’ t adapted to this new reality. Laurent acknowledges the operational challenges this creates, noting that“ instant payments may move money in seconds, but managing fraud and risk at that speed is a whole new challenge.”
138 September 2025