Volumes of real-time payments (RTP) hit nearly 7 billion dollars in 2018, according to research firm, Zion Market Research. And over the next five years, that number is expected to grow by a CAGR of more than 30 percent, topping $25 billion in transactions. As these numbers indicate, with quicker settlements come much higher potential for fraud losses, coming from both account takeover fraud and manipulation of devices and valid users for ultimate financial gain.
The expectation among financial services organizations is that the need for real- time solutions and additional layers of protection will increase with the expansion of the market into P2B and B2P as well as the continued growth of connected devices. Investments in the RTP sector by governments and financial services will also continue to accelerate growth. As payments become more cross border, additional regulation and fraud mitigation tools will be essential to meet these new challenges. Managing the risk will require even more data collection and closer management by all participants in the payments industry.
With payments becoming faster and more complex, how do you keep up with the changes?
The use of an integrated fraud detection platform that allows complex analytics capabilities, quick deployment, easy data integration, responsive workflow and risk mitigation actions is imperative. A robust system that allows the addition of multiple data sources and which manages analytics on the fly, gives any organization the necessary tools to respond to the dynamic nature of real-time fraud.
In addition to a detection platform, managing today's enterprise fraud operations requires a productivity tool that can constantly analyze and identify potential operational bottlenecks as well as utilize automation to improve efficiencies. A flexible tool that can provide a snapshot of fraud "hotspots" and patterns may also be leveraged to create overview reporting and trend detection.
With such a short timeline to respond to events in real time payments, having a central and integrated fraud platform to manage all of your tools, analytics and operations becomes even more critical to success in these times of exploding fraud and growing data requirements.