Protect Your Business from Fraud: Secure in Cross-Border Payments

In a world where instant payments are a competitive necessity, businesses processing cross-border transactions face a growing risk: fraud. From unauthorized push payment (APP) fraud to identity theft, companies dealing with international payments must navigate a landscape where traditional payment systems often fall short in security and efficiency.

A 2023 report by Juniper Research revealed that digital payment fraud reached $48 billion globally, with a significant portion stemming from vulnerabilities in traditional financial systems. Payment service providers (PSPs) and money transmitters processing high volumes of transactions are particularly exposed to threats, requiring innovative solutions to mitigate risks and enhance security.

How Traditional Payment Systems Create Risk

Legacy payment infrastructures such as SWIFT and ACH, which have long facilitated global transactions, are increasingly becoming prime targets for fraud due to their structural inefficiencies:

• Settlement Delays: Payments often take days to complete, allowing fraudsters time to manipulate transactions.
• Multiple Intermediaries: Each transaction may pass through various banks, increasing potential failure points and security risks.
• Lack of Real-Time Tracking: Delays in fund tracing make it difficult to detect unauthorized transactions before they are completed.
• APP Fraud & Identity Theft: Attackers impersonate vendors or clients, tricking businesses into sending funds to fraudulent accounts. In the UK alone, push payment fraud rose by 22% in 2023 (UK Finance)

These inefficiencies not only elevate security risks but also increase operational costs, ultimately impacting a company's bottom line.

Blockchain & Stablecoins: A Safer Alternative for Businesses

As fraud threats evolve, companies are increasingly adopting blockchain-based solutions and stablecoins to enhance the security and efficiency of their cross-border payments. Unlike traditional financial systems, these technologies offer:

• Instant Settlement: Transactions settle in seconds, eliminating the risk window exploited by fraudsters. According to Chainalysis, stablecoin-based payments reduce settlement times by over 90% compared to traditional methods.
• Full Transparency & Real-Time Tracking: Every transaction is recorded on an immutable blockchain ledger, allowing for instant audits and fraud detection.
• Reduced Intermediaries: With fewer banks involved in the transaction flow, security risks and processing costs are minimized.
• Smart Contracts for Automated Validation: Pre-programmed transaction rules prevent unauthorized fund transfers, reducing fraud attempts by up to 75% (European Payments Council).

Bitso Business: Enhancing Payment Security in Latin America and Beyond

For enterprises handling cross-border transactions, security and compliance are non-negotiable. Bitso Business provides a secure, efficient, and fully traceable payment infrastructure that enables PSPs and money transmitters to process payments with confidence.

How Can Your Business Stay Ahead of Fraud?

As fraud tactics evolve, so must payment security strategies. Companies relying on traditional banking methods are at higher risk of security breaches and operational inefficiencies. By leveraging blockchain technology and stablecoins, businesses can mitigate risks while optimizing costs and transaction speed.

Is your company prepared for the next generation of secure cross-border payments? Learn more about how Bitso Business can help your enterprise navigate fraud risks while enhancing operational efficiency.