Real-time payments equal real-time fraud

Real-Time Payments (RTP) systems have revolutionised transactions worldwide, bringing unmatched convenience but also inadvertently fuelling rapid growth in payment fraud. Australia, like its APAC neighbours Singapore and Hong Kong, has experienced an alarming correlation between RTP adoption and scam-related financial losses. Scammers exploit RTP’s instantaneous and irreversible nature to rapidly funnel stolen funds away from victims, leaving consumers and financial institutions struggling for recovery options.

Between 2019 and 2022, as RTP transactions via Australia's New Payments Platform (NPP) surged approximately tenfold, scam losses increased sharply from AUD 684 million to AUD 3.1 billion. The trend is now mirrored globally, including the United States, where banks have restricted Zelle payments linked to social media due to similar fraud concerns.

Australian banks and Payment Service Providers (PSPs) faced distinct challenges implementing RTP securely:

Instant and irreversible payments. Immediate settlement leaves minimal room to intercept fraudulent transactions.
Inadequate identity verification. Social media platforms and peer-to-peer marketplaces remain vulnerable due to limited identity checks, enabling anonymity.
High compliance costs. Banks must significantly upgrade fraud detection infrastructure to meet real-time demands. A recent conversation with a banker said they are spending USD 2.40 for every dollar of fraud reported to their institution.
Regulatory ambiguity. Unlike the UK's proactive framework addressing Authorised Push Payment (APP) fraud, Australian banks face uncertain regulatory obligations.

The most prevalent RTP fraud category is Authorised Push Payment (APP) fraud, where victims unknowingly send funds to scammers disguised as trusted entities or individuals. Increasingly sophisticated scams employ AI-driven impersonation to bypass basic detection measures.

Identity fraud further exacerbates RTP risk. Scammers leverage limited verification processes in online marketplaces. Internal data from Securely Group suggests nearly 30% of transactions in marketplaces such as Facebook involve fraudulent actors.

New regulatory response: Australia's Scams Prevention Framework (SPF)

The Australian Government's recently introduced Scams Prevention Framework (SPF), in January 2025, provides a structured, economy-wide response to the growing fraud epidemic. SPF introduces mandatory, enforceable obligations across banks, digital platforms, and telcos — the primary sectors facilitating scams. Its principal goals include preventing scams before they reach consumers, detecting scam attempts swiftly, and actively disrupting fraudulent activities.

Specific SPF obligations are clear:

Banks must enhance verification technologies, issue real-time transaction alerts, and implement biometric identity checks.
Digital platforms are mandated to verify advertisers’ financial credentials, block scam advertisements, freeze fraudulent accounts, and educate users proactively.
Telcos are required to filter known phishing links, educate consumers, and use advanced analytics to detect and block scam communications.

The SPF also emphasises cross-sector intelligence sharing via the Australian Competition and Consumer Commission (ACCC). For example, when a bank detects a suspicious international payment linked to a social media ad, it must report to the ACCC, which disseminates details promptly across financial institutions and platforms, enabling swift action to prevent further victimisation.

Strategies for preserving user experience and robust fraud prevention

While RTP offers convenience, security should not suffer as a result. The SPF aligns closely with recommended best practices to achieve this balance:

T+2 settlement for first-time payments. Introducing short, controlled delays for new payee transactions provides critical intervention time, significantly reducing scam success without substantial user inconvenience.
Enhanced digital identity verification. Adopting secure identity verification frameworks, such as Securely’s patented Social Media Identity Securitization (SMIS), links verified bank accounts directly to social media profiles, effectively neutralising identity scams at the source.
Adaptive AI monitoring. Utilising advanced machine-learning algorithms to conduct real-time transaction risk assessments, institutions can target suspicious activity precisely without negatively impacting legitimate users.
Consumer education. Government-sponsored public awareness campaigns, beginning in 2025 as outlined in the SPF, aim to equip Australians with the necessary knowledge to identify and avoid scams effectively.

Looking ahead: RTP fraud prevention in Australia and APAC beyond 2025

Future fraud prevention will be influenced significantly by emerging technologies, enhanced regulatory measures, and collaborative frameworks:

Quantum and AI integration. Quantum computing, combined with AI, promises unprecedented capabilities in fraud detection, enabling instant analysis of vast transaction data to proactively thwart scams.
Regulatory refinements. Inspired by international efforts, Australia may expand SPF obligations further, potentially following the UK's mandated reimbursement for APP fraud. Clear dispute resolution pathways under the SPF will further encourage financial institutions to prioritise fraud prevention.
Enhanced cross-sector accountability. Social media platforms and digital marketplaces will likely face increased scrutiny and explicit accountability, as mandated by future extensions of the SPF. The collaborative approach outlined in the SPF, involving banks, telcos, and platforms, sets a new standard for multi- sector cooperation.
Broader public awareness campaigns. The SPF-funded national awareness initiatives starting in 2025 mark the beginning of sustained, government-led educational campaigns. Regular and widespread consumer education will become essential for scam prevention efficacy.

The SPF represents a pivotal shift, placing comprehensive responsibilities across multiple sectors and introducing robust, enforceable fraud-prevention measures. Australia's payments sector now faces an imperative - embracing these obligations swiftly and collaboratively or risking continued consumer harm and erosion of trust.

As payment professionals, our role is clear. Through proactive technology adoption, rigorous compliance with SPF obligations, and cross-sector collaboration, we can preserve the enormous benefits RTP systems offer, ensuring Australia's financial ecosystem remains secure, trusted, and resilient well beyond 2025.

About Rob Neely

Rob Neely is the Founder and Managing Director of Securely Group, an international award-winning fintech innovator dedicated to revolutionising secure digital payment transactions and identity verification globally. With an entrepreneurial career spanning decades, Rob has successfully built and scaled businesses globally, driven by his passion for innovation, cybersecurity, and combating online fraud. A respected thought leader, Rob leverages deep expertise and strategic vision and is considered a leader in fintech disruption.

Real-time payments equal real-time fraud: navigating RTP security under Australia's new Scams Prevention Framework

New regulatory response: Australia's Scams Prevention Framework (SPF)

Strategies for preserving user experience and robust fraud prevention

Looking ahead: RTP fraud prevention in Australia and APAC beyond 2025

About Rob Neely