3 Fraud Experts Answer 5 FAQs on Real-Time Money Movement

As real-time money movement (RTMM) systems have taken off around the globe, consumers in the U.S. have shown increasing interest in instant transactions: 80% of consumers want to make payments faster and more direct. The launch of FedNow made RTMM more accessible than ever before, and has forced fraud professionals to evaluate if their solutions are ready for the challenges that come with RTMM. 

Our The Dark Side of Speed: Fraud in Real-Time Payments webinar series has answered some of the questions holding institutions back from committing to RTMM (and causing them to miss out on billions). In January, fraud expert and consultant David Liu joined NeuroID Head of Operational Strategy Nash Ali to discuss the impacts of RTMM on banks and financial institutions, followed by Nash and fraud and payments executive Curt Haid’s breakdown of cross-border payments earlier this month. As part of the webinar, our experts answered questions from the audience—here are some of the biggest topics that came up from fraud and risk professionals. 

Question 1: Are restrictions on cookies, like Google blocking third-party cookies on Chrome and GDPR changes, going to impact biometrics vendors who use Javascripts? 

Answer: It’s possible, but your fraud mitigation ability won’t be impacted as long as you have the right tools in place. Privacy concerns are always going to be top of mind in fraud prevention, so it’s important to find a solution that does not carry heavy privacy risks. Solutions like behavioral analytics are not impacted by the same regulations affecting biometrics providers and add a friction-free, first line of defense against fraud anywhere user interaction occurs.

Question 2: Are scams considered first-party or third-party fraud?

Answer: Scams are third-party fraud, but it’s a tricky question because they look like first-party fraud. In a scam, the victim is a real person using their own information. The victim will pass ID checks, device signals, and other measures that would stop conventional third-party fraud attempts. Scam victims do, however, behave differently than they do when they’re not being scammed. Behavioral data reveals information that other fraud prevention tools can’t and is crucial in stopping scams, because we track intent, which is incredibly difficult to spoof. 

Question 3: When detecting fraud in real-time payments, how impactful is gathering both behavioral analytics and device information?

Answer: Very. Device information is great for recognizing returning users, but if you’re relying on it for fraud prevention, fraudsters know how to circumvent it. Behavioral analytics adds an extra source of information to inform decisions, giving you even greater confidence in your fraud solutions.

Question 4: What fraud prevention measures are set to be integrated into real-time payment rails like FedNow?

Answer: None. The onus for fraud prevention is on the institutions that use real-time payment rails, not the rails themselves. Institutions will have to implement their own fraud mitigation solutions or risk regulatory scrutiny and major fraud losses.

Question 5: Alongside AI programs, how large of a threat does quantum computing pose as a fraud tool?

Answer: Quantum computing only makes fraudsters more dangerous. It’s another tool for them to take advantage of the speed and irrevocability of real-time money movement. The harsh truth is that fraud is moving faster than traditional fraud prevention methods can respond; businesses need significant, effective innovations to stop evolving fraud tactics. Behavioral analytics, which can add new signals to spot fraud that other tools can’t, is one solution that can be crucial in stopping modern fraud attacks. 

Do you have questions about how RTMM impacts your business? Don’t miss your last chance to ask them! On March 11, join payments and fraud expert Tom Donlea and Nash Ali for our final RTMM webinar session, Growth and Fraud in eCommerce.