US-based fraud and risk management company DataVisor has announced the launch of a new solution to prevent instant payments fraud. As the FedNow Service expands instant payment options, the company’s Real-Time Payments Fraud Solution leverages account life-cycle signals, advanced machine learning techniques, and prebuilt rules that have been tested for real-time payment fraud scenarios.

Financial institutions could safely introduce instant payment technologies with the incorporation of this solution. According to the United States Real-Time Payments Market Size and Share analysis, the market is expected to register a CAGR of 10.12% during the forecast period 2022-2027. The increased adoption of the ecommerce economy and online transactions in the US influences the growth, therefore new instant payment fraud risks will also rise.

Financial institutions will likely have a harder time detecting fraud in real-time payments, due to their instantaneous nature, therefore increasing the risk for fraud losses and fraudsters that can exploit this speed to transfer and withdraw funds before the transaction is identified as suspicious. Officials from DataVisor have stated that their objective is to provide security by protecting instant transactions and allowing financial institutions to adopt real-time payments. Key features of DataVisor’s solution More than six pre-configured rulesets, several rules and decision flows, including A2A, C2B, C2M, P2P, B2B, and B2C to cover a variety of real-time payments fraud scenarios, such as account takeovers, business email compromise scams, social engineering scams, and romance or elderly abuse; A range of data and pre-configured fraud signals that are dynamically calculated in real-time during production, allowing the system to identify suspicious behaviours, such as abnormal velocity and out-of-pattern transactions;  Machine learning models that include both supervised and unsupervised algorithms, which can support more than 10,000 transactions per second and less than 200 milliseconds latency; Immediate alerts as fraud patterns change and the ability to mitigate the threats, with analysts that can identify risks, create new attributes, and deploy new rules on the platform; Orchestration of different data sources, including call centre activities, login activity, and dark web data to provide decisions based on a 360-degree view of each customer.

More information about DataVisor Back in July 2023, the company partnered with Q6 Cyber, a cyber and fraud threat intelligence firm, in order to improve fraud detection accuracy. Through this collaboration, DataVisor’s goal was to integrate and centralise relevant threat intelligence data in a single platform, therefore improving the detection accuracy and speed of financial fraud. In May 2023, DataVisor started a collaboration with DCI in order to decrease fraud in the banking system.

Both companies wanted to enable customers to detect and mitigate application and identify theft, transaction fraud, account takeovers, and money laundering, that increase the risk of financial and reputation damage. Moreover, in March 2023, the company launched new capabilities in decision flow, a cloud service that was designed to support businesses, enterprises, and companies globally. .