Speed Meets Security: How Real-Time Payments Are Outsmarting Fraud

Faster payments are transforming the financial landscape, but with speed comes heightened fraud concerns. Real-time payments move instantly, making them attractive to both consumers and fraudsters. However, the reality is more complex — real-time payment systems can enhance fraud prevention when combined with advanced security measures.

According to experts with the BAI, fraud rates on real-time rails such as the RTP® network and the FedNow® Service are substantially lower than those for traditional payments such as automated clearing house (ACH), wire transfers and checks. Financial institutions (FIs) are leveraging artificial intelligence (AI)-driven monitoring, real-time transaction analysis and tokenized processing to detect and prevent fraudulent activity before it occurs. In fact, 94% of organizations now use AI and machine learning to identify fraud risks based on transaction behaviors, helping to reduce losses while maintaining the speed of instant payments.

Consumers demand better fraud protection from their banks, with 75% stating they would switch FIs if they found security measures inadequate. Additionally, 57% of consumers say improved fraud detection is one of the top priorities they want their banks to address. These trends signal a shift in expectations: Speed alone is no longer enough; security is just as critical.

The good news? Real-time payments prove that instant transactions and robust security are not mutually exclusive. By implementing AI, real-time fraud detection and stronger authentication, FIs can ensure that faster payments remain safe for businesses and consumers.

As real-time payments become the new standard, preventing fraud threats is essential. See how FIs use cutting-edge technology to strike the perfect balance between speed and security in the latest Money Mobility Tracker® report.

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The “Money Mobility Tracker®,” a collaboration with Ingo Payments, explores how FIs leverage advanced technologies to balance the speed of real-time payments with robust fraud prevention strategies, ensuring that faster transactions remain secure against evolving threats.

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