Instant payments: a guide to real-time security

Instant payments are revolutionising the way money moves, enabling transactions to be completed within seconds, 24 hours a day, 365 days a year. This speed and convenience are reshaping customer expectations and business operations across Europe and beyond. However, the immediacy of instant payments also introduces new vulnerabilities. Fraudsters are adapting their tactics to exploit the speed and irrevocability of these transactions.

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 by 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 and standard SEPA Credit Transfers each have their own strengths and should be used according to the business need.

Instant Payments provide significant value when immediate execution and confirmation are important, such as urgent supplier payments or other time-sensitive business 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.

For routine or planned payment flows, such as recurring supplier payments, salaries and pension payments, a standard SEPA Credit Transfer may remain the more suitable option. The same fraud prevention measures should be applied regardless of the payment type, including beneficiary verification, segregation of duties and the four-eye principle.

The key difference is timing. Because Instant Payments are executed within seconds, there is less opportunity to review or intervene before funds are transferred. Organisations should therefore carefully consider whether immediate execution is required for a particular payment and use Instant Payments where the speed delivers a clear business benefit.

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

Visit our Banking safely page.