The pressure is mounting. Real-time payments are gaining traction globally, from India to the U.S.—but fraudsters are moving just as fast.
Earlier this week, a powerful conversation between Suparna Goswami (ISMG) and Pete Redshaw (Gartner) brought forward a reality many in the banking sector are quietly grappling with: our fraud prevention systems are still living in silos.
🔄 From Siloed Systems to Smart Integration
Most banks still treat fraud, security, identity, and compliance as separate lanes. That fragmentation creates blind spots—and fraudsters know exactly how to exploit them.
The future? A converged fraud prevention strategy that aligns:
- Security
- Identity & Access Management (IAM)
- Fraud detection
- Compliance
It starts with data. Without a consolidated view across systems, even the smartest fraud models fall short. The next step is tool integration—and thankfully, vendors are starting to step up, offering bundled solutions that combine fraud and AML.
But don’t overlook the people side. Over the next few years, banks will need to restructure internally, bringing fraud, risk, and IAM teams closer together—perhaps under the same leadership banner.
⚡ Real-Time Payments = Real-Time Threats
Let’s be clear: Real-time payments aren’t just faster—they’re a game changer. Investigators now have milliseconds to spot threats, not hours. That requires:
- Smarter automation
- Better workflows
- More intuitive fraud detection tools
And yes, this applies even more if you’re a smaller bank with limited resources.
🧠What About Smaller Banks?
Not every institution can afford an army of data scientists. This is where innovative machine learning models become crucial. Vendors should focus on offering fraud detection solutions that are
- Easy to plug in
- Trainable with the bank’s own data
- Maintained externally when needed
Think of it as managed fraud prevention—not unlike managed IT services.
🤝 Intelligence Sharing: The New Frontier
For years, banks have held their fraud data close, seeing it as a competitive asset. But things are changing. More institutions are open to collaborative fraud intelligence—and not just through regulators. Cloud platforms now allow for federated insights: shared patterns without compromising private data.
That’s a big step forward.
🔧 The Role of Vendors: Integration > Multiplication
Banks don’t want a patchwork of disconnected tools. They want solutions that:
- Talk to each other
- Work well post-deployment
- Reduce operational drag
IAM, for example, shouldn’t live in a vacuum. When integrated properly, it can become a central nervous system—monitoring who’s accessing what, when, and why. That’s a core layer of fraud prevention.
đź’ˇ Takeaway
Fraud is evolving. Fast. But so are the tools, strategies, and partnerships available to combat it.
Whether you’re a developer building the next-gen IAM solution or a banking executive looking for the right vendor alliance, one thing is clear:
Integration isn’t optional anymore—it’s essential.
How is your organization adapting its fraud prevention strategy?