How to Stop Your Clients’ Digital Payments From Exposing You to Risk

Right now, your clients are using digital and mobile wallets such as PayPal, Revolut, and Venmo for roughly 45 per cent of their global e-commerce payment transactions. And that figure is set to increase to over 50 per cent in the next three years.

They’re also digitally purchasing huge amounts of goods and services through online retail giants such as Amazon, AliBaba, and eBay. Global ecommerce sales for 2021 are forecast at almost $5 trillion, and predicted to grow by another $6.4 trillion by 2024.

But, as the market explodes, so too does criminal activity: widespread money-laundering and financial crime are rife across the digital payments sector. Which means, without state-of-the-art transaction monitoring software, every single one of your clients’ digital transactions is exposing your firm to risk…

Rocketing Risks

Changing customer behaviour means new AML risks appear constantly, and financial institutions must respond quickly and efficiently to each threat. But – as it’s not humanly possible to make the plethora of sub-second decisions required for each digital payment – the market has turned to technology.

Innovative AI transaction monitoring solutions are the key to risk-proofing your business. From pattern recognition to behaviour detection, machine-learning solutions deliver incredible results: negating risk; delivering compliance; and providing incredible value to the organisations that use them…

1. Beating Fraud

With a bespoke AML solution, compliance becomes effortless as data enriched by network analysis connects companies, countries, and accounts to identify those with a higher risk of fraudulent transactions in a matter of seconds.

These analytics are able to examine millions of connections between entities, looking for similarities in known methods and typical behaviours that indicate a high risk of money laundering. Information which would be impossible to handle manually can now be processed with ease and speed.

2. Reducing False Positivities

Manual processing relies on a few, static criteria; no human brain is capable of comprehending the vast amount of data and endlessly changing rule-set involved in monitoring every transaction.

But transaction monitoring software is capable of setting, monitoring, and analysing hundreds of possible parameters at any one time. This precision of rules allows the software to utilise a vast series of constantly updated indicators, capturing behaviours which point to different levels of risk and consequently reduce the incidence of time and cost-consuming false positives.

3. Adding Value

AI transaction monitoring solutions also provide a host of added benefits. Using a clever combination of Natural Language Processing and external data sources, the technology is able to screen far greater amount s of information at a much deeper level than ever before.

AI-driven NPL detects suspicious interactions between entities by reading, processing and deriving meaning from text, whilst detecting underlying patterns in huge volumes of unstructured data. Able to understand not just content but also context, it works with emails, news articles and social media posts to analyse billions of transactional configurations, building an ever-changing picture of what constitutes risk.

Every company operating within the digital financial sphere now requires sophisticated monitoring software to negate transaction risk. iSPIRAL’s RegTek+ platform is designed specifically to help firms comply faster and with greater accuracy at a multi-jurisdictional scale.

Trusted by leading companies worldwide, the RegTek+ Transaction Monitoring module utilises machine learning to detect suspicious patterns, review dubious transfers and transactions, and assign a risk level to each: ensuring effortless compliance by exposing issues such as where the money came from and where it went, and whether the funds have been legitimately or illegally obtained.

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