Instant payments: a guide to real-time security

Instant payments allow funds to be transferred and received in real time, often within seconds. They are available around the clock and are increasingly used for everything from peer-to-peer transfers to business refunds and supplier payments.

This shift to real-time transactions offers clear advantages:

• Faster settlement and improved liquidity
• Enhanced customer experience
• Reduced reliance on traditional banking hours

However, the immediacy of instant payments also introduces new vulnerabilities. Fraudsters are adapting their tactics to exploit the speed and irrevocability of these transactions.

The rise in fraud figures, combined with fraudsters’ preference for using instant payments, can lead to the misconception that the payment method itself is insecure. In reality, the increase in fraud is not due to the product, but to the growing sophistication of scams.

Fraudsters are getting better at convincing victims to authorise payments often under pressure or deception. The irrevocable nature of instant payments makes them attractive to criminals, as it aligns with their increasingly advanced tactics. Prevention is therefore critical.

• Payment manipulation: Fraudsters alter payment details or intercept transactions in real time.
• Business email compromise (BEC): Fraudsters impersonate trusted contacts to initiate fraudulent payments.
• Synthetic identity fraud: AI-generated identities are used to open accounts and initiate transactions.
• Social engineering: Urgent or emotional messages prompt users to bypass verification steps.

• Always verify new or changed payment instructions with the recipient directly.
• Be cautious of urgent requests or emotional appeals.
• Use secure systems for initiating and approving payments.
• Monitor account activity regularly and report anomalies immediately.
• Limit access to payment systems and enforce dual approval for high-risk transactions.

Instant payments offer speed, flexibility, and convenience, but they also demand vigilance. Secure real-time payments are achievable when supported by strong controls, smart technology, and a culture of awareness.

If you suspect fraud or have received suspicious payment instructions, contact your bank or financial institution immediately through official channels.

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