Why Your Digital Payment Channels Need Real-Time Payment Fraud Prevention

Exploring the benefits and use cases of BANKiQ’s IFRM

Well, you are all aware of what a digital payment is. Of course, you should be, because that is what helps you pay your bills, order food, shop online, and so on, while comfortably seated in your place. The speed and convenience it offers for your daily financial transactions are beyond measure, and digital payments keep revolutionizing the fintech industry with new breakthroughs that are more rapid, convenient, and on-the go for users. But on a serious note, are you aware of the risks your digital payment channels can run into if they are not equipped with an accurate and onspot real-time fraud prevention solution?

This blog will address the issue by introducing BANKiQ’s Inline Fraud and Risk Management (IFRM), the modern-age fraud prevention solution designed to safeguard payments and simplify compliance. It will also help analyze how a real-time payment fraud prevention solution can serve as a cornerstone for your digital payment channels, preventing digital fraud and theft.

Engaging trivia: A recent survey indicates every rupee lost to fraud costs Indian companies 4RS.

Why real-time payment fraud prevention solution?

While the advancement of digital payments cannot be understated, it is important to note that the risks posed by a millisecond transactional window are way higher and costlier for organizations when a slight compromise happens on the security front. To help businesses be aware of each minute transaction, real-time fraud prevention is the only feasible and proactive solution that helps monitor, track, and respond to fraudulent transactions in less than a minute. The purpose of a real-time payment prevention solution differs depending on each organization’s needs and requirements; however, on a large scale, it is mainly to stay away from risky transactions and adhere to compliance standards.

Let’s consider three different scenarios for digital payment transactions that will clearly explain the need for and importance of real-time payment fraud prevention for your business.

Instance 1:

Imagine you are not a regular user of digital payments and decide to go on a digital transaction spree in a day with high volume transactions. This is considered to be an unusual pattern in your financial profile, leading to a risk assessment from your bank’s end. In this case, what should be the solution empowered by your digital payment channel? Should they use the conventional strategy whereby the analysis on your profile takes at least a day’s time frame to evaluate or go for a real-time fraud prevention solution?

Instance 2:

What if you come across an article stating your digital payment channel has not adhered to regulatory requirements like the Payment Card Industry Data Security Standard (PCIDSS) or the General Data Protection Regulation (GDPR) that are mandated for securing and protecting your data and profile? This oversight can be rectified with a technological infrastructure or solutions like real-time fraud prevention that aid in adhering to compliance regulations and building trust among customers.

Engaging trivia: : During the fiscal year 2022-2023, the number of reported UPI fraud cases exceeded 95,000.

Instance 3:

In the event that your device is stolen or lost, the chances of identity theft or illegal transactions taking place are high, leading to a loss of money. To prevent this, payment channels need to be proactive, like implementing additional authentication steps that trigger alerts or notifications in the event of unauthorized transactions being made. This kind of prevention and protection is possible only through robust real-time fraud prevention solutions.

The above three instances clearly indicate how digital payment channels can benefit from implementing a real-time fraud prevention solution that provides them with robust features to monitor, track, and prevent fraudulent transactions in real-time.

Now that the significance of real-time fraud prevention solutions has been understood, let’s analyze how BANKiQ’s IFRM serves as a pivotal tool for digital payment channels.

Why BANKiQ?

The world of financial crimes has advanced so much, demanding a proactive and preventive solution that works by monitoring user pattern behavior and indicating alerts in the event of unusual or suspicious activity. This is achieved through BANKiQ’s IFRM solution, where digital payment channels can

  • Eliminate false indications by leveraging an AI-based model
  • Track unusual activity in real-time, preventing loss of money
  • Prevent evolving fraud types

BANKiQ’s IFRM use cases 

As a modern and cognitively abled platform, BANKiQ’s IFRM solution is one of its kind for businesses in the digital landscape struggling to combat the evolution of digital fraud transactions. The following use cases illustrate how BANKiQ’s IFRM solution effectively plays a major role in real-time fraud prevention and detection.

Malware-induced redirection of e-banking sessions

E-banking, being one of the most common forms of digital banking, is poised to suffer from ill-legal transactions by fraudsters re-directing websites during payment processing. This is done through the integration of malware or ransomware attacks curated effectively for e-banking portals. To safeguard users from proceeding with transactions on redirected websites, BANKiQ’s IFRM comes as a handy solution where it can monitor the re-direction attempt by the user. This helps flag the transaction process as a highly risky and non-permitted one, thereby assisting users with preventive measures that will help them safeguard their money and other potential data.

Breached online banking session

Account takeover has become one of the most challenging concerns for businesses operating in the digital era. The plight of capturing user credentials without their knowledge and utilizing them to perform unauthorized transactions by mimicking user patterns of transactions poses serious security risks that demand immediate attention and proactive action. BANKiQ’s IFRM can be the perfect solution because it leverages AI-based advanced analytics to create a baseline for every user. Any deviation from this baseline triggers alerts or gives notifications indicating your profile is in danger.

The real-time fraud prevention system from BANKiQ assists in session monitoring, device information, and credential checking, along with the analysis of multiple data points, IP addresses, geolocation data, and transaction histories through its sophisticated fraud detection algorithms. The most important aspect of fraud prevention is the ability to respond to risks in real-time, and BANKiQ’s IFRM does it seamlessly by escalating authentication mechanisms, temporarily suspending transaction processing, and triggering automated alerts. This way, businesses can be kept aware of any kind of suspicious or account takeover activity.

SIM Swaps

The potential to control a user by transferring the user’s SIM card to a new SIM card is a way to take advantage of the user’s details. This way, fraudsters gain access to all the details incoming to the user’s SIM, including bank credit and debit details, OTPs, passwords, and other sensitive information. This empowers malicious attackers to manipulate and conduct transactions, financial crimes and other digital theft. To overcome this, BANKiQ’s IFRM plays a crucial role, where it detects, monitors, and tracks the behavioral patterns of users, right from SIM card exchanges, SIM replacement orders, and other details that seem to be less relevant or unusual compared to other day activities. Also, the collaboration with service providers further enhances the protection and safeguarding of SIM swap attempts.

Identity theft from phishing

Phishing involves the process of sending unauthorized emails, messages, or other kinds of disguised information to users, thereby tricking them into providing sensitive information. Fraudsters then use the stolen information to carry out illegal and unauthorized transactions in place of the user without creating any ounce of doubt for anyone. In fact, this type of fraudulent activity is one of the most commonly occurring digital frauds in recent years. With BANKiQ’s IFRM solution, businesses can avoid falling for phishing scams. Based on machine learning algorithms, it helps detect email patterns, addresses, and other criteria that may be found suspicious or unusual from regular transaction patterns and behavior. Also, the ability to analyze phishing incidents and fraud events helps organizations stay proactive and prepared to enhance their phishing prevention strategies and improve their security posture against all these financial crimes.

Illegitimate banking apps

It is no surprise that there are applications exclusively designed and developed to function like banking apps to trap users. This way, fraudsters gain access to user’s sensitive information and credentials, leading to financial loss and identity theft. Digital payment channels need to be aware of such scams in the first place. Later, integrating real-time fraud prevention solutions like BANKiQ’s IFRM helps safeguard their user’s identities. Designed to verify fake applications through digital signatures, app metadata, and developer certificates, the IFRM solution serves as a pivotal tool for digital payment channels struggling to provide a secure, tamper-proof platform for their users. The capabilities to detect fraud in real-time, generate alerts, and report suspicious transactions enable BANKiQ’s IFRM solution to be a go-to fraud prevention tool for digital payment channels.

Thus, the use-cases of BANKiQ’s IFRM clearly explain why and how digital payment channels need to bootstrap their security front at the earliest.

Advantages of BANKiQ’s IFRM solution

Before we conclude, let’s overall analyze the benefit of BANKiQ for your business to keep fraud and risky transactions at bay.

  • It helps in spotting threats and deviations by analyzing the histories of transactions.
  • It provides real-time monitoring, where every minute of the transactions is monitored then and there.
  • It offers multiple verification mechanisms to ensure no third-party user gets access to sensitive and confidential information.
  • It creates behavioral profiles of users based on their transaction patterns, preventing unrecognized users and activities.
  • It generates alerts and notifications for users in the event of any suspicious user activity.
  • It helps comply with regulatory requirements related to fraud prevention and incident reporting, reducing fines and liabilities.

Overall, the addition of BANKiQ’s IFRM solution emphasizes only one thing, i.e., staying preventive and proactive against fraud and risky transactions.

Conclusion

The need for real-time monitoring and fraud prevention solutions is growing multiplefold as digital payment channels are regularly exposed to risks from fraudsters who keep changing their strategies and tactics. The need to crack the code and build a strong defense against malicious attackers requires the assistance of companies like BANKiQ, which helps not just prevent ill-legal transactions but also detect and respond to them in a timely manner. As a new-age, cognitive, and AI-powered platform, BANKiQ’s IFRM solution for digital payment channels for defending financial crimes and other illegitimate activities in real-time is supportive and helpful. When your business needs a real-time security solution, why not provide the best in the market? Get started by booking a demo with BANKiQ experts who can guide you through the capabilities of the solution.

By BANKiQ