Preparing for Instant Payment: Strategies for Risk Mitigation

strategies against instant payment risks

Last modified on April 17th, 2024

As instant payment methods eliminate the possibility of after-the-fact controls, businesses must strengthen controls throughout their payment processes and promote teamwork to ensure transactions are error-free and secure. Read on to discover the mitigation strategies to safeguard your business against instant payment risks.

Promoting Teamwork and Collaboration

Instant payment risks call for more collaboration within organizations. Establishing routine meetings across departments can uncover potential weaknesses in the payment process and prevent costly errors. Additionally, collective training on detecting fraud and staying updated on new techniques can increase awareness. Fraud prevention software like Trustpair offer collaborative features like customized workflows, task centers, and live warnings in case of suspicious transactions or data changes.

Engaging in broader industry collaboration with banks, regulatory bodies, and other businesses can also create a more secure environment. Sharing insights, best practices, and intelligence on emerging threats can lead to stronger, community-wide defense mechanisms against payment fraud.

For more insights and best practices, download Trustpair and UniCredit’s latest white paper about Instant Payments.

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Refining Internal Controls

To minimize errors and fraud, companies must strengthen their payment processes to ensure payments are sent to the right beneficiaries without any data inaccuracies. Internal controls should include duty segregation, dual-verification systems, and robust authentication methods. Regular reviews of these internal policies are key to countering new threats and complying with evolving regulations.

Fraud prevention needs to be a continuous effort along the entire payment chain. Since fraudsters can infiltrate vendor systems to alter banking details, ongoing verification of key information—such as company IDs, bank account details, and their coherence—is crucial.

Embracing Automation for Data Verification

Manual verification of banking data, especially for companies dealing with many vendors and transactions, isn’t feasible. Automation is key to maintaining accuracy and facing instant payment risks. Businesses should employ sophisticated fraud detection technologies capable of real-time transaction monitoring, identifying unusual patterns, and flagging potential fraud risks.

Automated solutions like Trustpair provide real-time account validation thanks to access to external banking databases like IbanCheck by UniCredit, ensuring the authenticity of transactional data. By continuously monitoring vendor information and pre-validating banking details before each transaction, businesses can significantly reduce the risk of fraud.

 

In conclusion,

The shift to instant payments necessitates a proactive approach, combining more internal collaborations, robust control measures, and the strategic use of automation to protect against the risks of instant transactions. Adopting these practices allows businesses to harness the benefits of instant payments while maintaining a secure transactional environment.

Trustpair protects you against instant payment risks thanks to ongoing and automated account validation. Request a demo to learn more!

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