Fraud-related losses may cost merchants $91 billion in 2028 alone. And for card-based transactions, projected losses are expected to hit $49 billion by 2030, according to industry estimates. Meanwhile global real time payments will continue accelerate at a rampant pace and gain momentum, with every tap, scan and swipe potentially opening doors to a growing universe of vulnerabilities.

Consider this. The number of parties involved in the lifecycle of a transaction has increased. It isn’t a one-on-one, payer to payee interaction anymore. Nor does it occur through a single channel. From mobile devices and cloud platforms to third-party apps and cross-border APIs, the journey is non-linear, intersecting a web of connections. Each node is an opportunity for innovation—but also an entry point for exploitation. So, security can no longer checkpoint set up at the entry and exit rather embedded across every step of a transaction—across systems, interfaces, and decision-making.

AI, Quantum Computing, Blockchain etc. are enabling smarter ways to make security omnipresent for real-time payments.

Sentiment analysis, geo-tracking and pattern analysis advance secure checkouts: AI-powered geo-tagging systems layered with behavioral pattern analysis don’t rely on static rules. It learns what “normal” looks like for each user - correlates location, timing, transaction history, to assess intent - and flags the deviations in real time. The system tracked transaction patterns based on the user’s typical behavior—where they usually transacted from, how much they spent, and at what times of day. Any request from an unknown country, at an odd hour, and for a higher-than-normal amount isn’t just flagged, it is blocked outright.

Post-transaction monitoring to identify anomalies: In one instance, a financial platform flagged a $1 million transaction after it had been initiated. While the transaction itself appeared was not flagged for compliance initially, further investigation revealed that it was being sent to an entity flagged on global watchlists. The event prompted an update in the fraud detection logic—not just to block that specific name, but to catch any future transaction that mirrored similar patterns or combinations of risk indicators. This type of adaptive learning is essential in a payments environment where rulebooks just can't keep up.

While AI gets most of the headlines, other technologies are catching up. Quantum computing for instance offers potential for building new forms of unbreakable cryptography—if companies are willing to invest early. Tokenization is also gaining adoption across many payment platforms to protect sensitive data—effectively rendering man-in-the-middle attacks useless.

Behind a truly secure payments system is a team that believes security is everyone’s responsibility. It is not a compliance check box or a layer that is added postproduction; it is how things are fundamentally thought of, built, designed and deployed. It’s less about what you do and more about who you are. And this is an impossible culture to institute if leaders don’t embody, demonstrate, practice and lead by example.

Linking security to strategy and operations: A security-mindset essentially prepares an organization to avoid a scenario that people think of as an off-chance. But there is merit in saving for a rainy day, right? In an environment where companies must at once navigate shifting customer behaviour, political cycles, regulatory challenges, emerging technologies, and performance pressures, it’s not inconceivable to push for initiatives that are topline movers. But one can argue that these myriad market forces make an equally compelling case to focus on what can protect the bottom line. The threat of reputation risk where people’s hard-earned money is concerned is exponential. It is inextricably linked to long-term value creation and a focus on rethinking priorities; and mapping those priorities against budgets and the competitive landscape is how innovation can be harnessed.

Co-creating a more secure and intelligent future.
We have seen regulatory intervention when it comes to schemes such as Buy now pay later, cryptocurrency, multi-factor authentication but these are controls put in place after observing adverse effects. Typically, fraud outpaces regulation so each of the three parties – organizations, customers and the regulators must play a part.

When companies handle fraud independently and don’t share the experience and learnings, the ecosystem remains unprepared overall. One of the biggest blind spots in today’s payments ecosystem is the lack of standardized fraud data sharing.

Similarly, if organizations operate in isolation, it is not possible to anchor a proactive third-party risk management system. Piece-meal, fragmented approaches lead to operational gaps, and organizations become vulnerable towards compliance failures, reputational damage and financial loss.

There is a lack of awareness and education on the part of customers. While companies must bridge this gap right from the point of customer acquisition, customers themselves should be abreast of device security, updates, hygiene checks like verifying unsecure sources, phishing information etc.

In global pilot programs led by SWIFT, institutions like BNY Mellon, Deutsche Bank, and HSBC are working to share anonymized fraud intelligence across borders. Similarly, the shift toward ISO 20022 is an opportunity to unify transaction formats, make automation more reliable, and build a shared language of risk across institutions. Without such standards, even the most advanced tools operate on fragmented data, limiting their potential.

How to Respond When Things Go Wrong
Breaches will always be possible in dynamic, ever-evolving scenarios. What matters is how you respond.

Analyze

Analyze the root cause and identify exposure.

Address

Address the issue quickly and implement controls to prevent recurrence.

Engage

Engage with customers and stakeholders openly, showing accountability.

Advise

Advise others, sharing your learnings to strengthen the ecosystem as a whole.

Security as Strategy, Not Just Safeguard
Digital payments don’t just move money—they move trust. And in the long run, it’s trust that consumers stay loyal to. The future of payments won’t be won by those who move the fastest. It will be won by those who build the safest, smartest, and most trustworthy ecosystems—where security isn’t a roadblock, but the road itself.