The open source Mojaloop platform was designed to address structural challenges in digital payment systems — including interoperability, transparency and the ability to incorporate safeguards such as pre-transaction validation that help reduce fraud risks. These design principles are increasingly relevant as the United States undergoes a rapid shift toward instant payments, a transformation that is exposing gaps in fraud protection across the financial system.
For decades, U.S. payment volumes were dominated by slower rails such as ACH, where batch processing allowed banks time to detect suspicious transactions before settlement. Today, newer rails — including RTP, FedNow and a growing ecosystem of digital wallets and stablecoin-based payments — move funds in seconds.
This shift has accelerated the rise of authorized push payment (APP) fraud, payment misdirection and business email compromise, with APP fraud alone estimated at $8.3 billion in 2024 and projected to reach $14.9 billion by 2028. Because many instant payments are authorized by the sender, traditional fraud tools designed for unauthorized “pull” payments often fail to detect scams in time. Other countries that adopted instant payments have already faced similar challenges and responded with safeguards such as Confirmation of Payee systems that verify recipient details before funds move.
Read the full article to explore how the evolution of faster payments is reshaping fraud risks in the U.S. — and why stronger payment infrastructure is essential for the future of digital finance.
