ChainIT and RS Software Partner to Enhance Security for Instant Payments with Risk-Based Authentication

ChainIT and RS Software Partner to Enhance Security for Instant Payments

In a significant move aimed at elevating the security surrounding account-to-account payments, ChainIT has partnered with RS Software to integrate risk-based authentication into their services. This collaboration marks a revolutionary step forward in the realm of digital payments, addressing a notable gap in the security measures associated with instant payment networks.

For the last two decades, card payments have relied on a unified framework for verifying risky transactions, specifically through the 3-D Secure system. However, the rapid rise of instant payments—transactions that are completed within seconds and cannot be reversed—has not yet seen an equivalent industry standard. With fraud losses linked to bank-transfer networks exceeding billions of dollars annually, and with a substantial volume of transactions migrating towards instant payment solutions, the necessity for a robust security framework has never been clearer.

According to the Federal Trade Commission (FTC), consumer fraud losses surpassed $12.5 billion in 2024, representing a staggering 25% increase from the previous year. Remarkably, bank transfers accounted for a larger portion of these losses than any other payment method. Two of the primary methods of fraud—account takeover and authorized push payment scams—expose a critical weakness in the system where identity verification only occurs once and is then presumed valid for subsequent transactions.

The new alliance between ChainIT and RS Software aims to eliminate this vulnerability by continuously evaluating identity and fraud risk for every transaction in milliseconds. Through RS Software's advanced fraud and risk platform, RS IntelliEdge™, each payment is assessed using a combination of behavioral, contextual, and device signals to determine risk levels. Additionally, ChainIT leverages biometric identity verification and Validated Data Tokens—cryptographically secure credentials that validate the identity of the person authorizing the payment.

When the combined risk score from these evaluations exceeds a predefined threshold, the payment processing institution has the autonomy to decide whether to require further verification, hold the transaction, or permit it to proceed without any additional checks. This system not only secures individual transactions but also extends to safeguarding business payments, ensuring that each transaction is firmly linked to the authorization agreement, thus identifying any counterparty risks that basic onboarding practices might overlook.

Throughout this process, the ultimate decision remains with the financial institution, which receives not only the risk score but also a clear rationale in layman's terms and a tamper-evident audit trail for accountability.

Raj Jain, CEO of RS Software, stated, "Identity verification serves as the primary gatekeeper against fraud, solidifying a core trust element in the payments landscape. We are thrilled to unite with ChainIT to confront this multi-billion-dollar market's challenges."

In alignment with this, Jeremy Blackburn, CEO of ChainIT, remarked, "Our role is to certify who has authorized a payment and to maintain that evidence in a manner conducive to resolving disputes. RS Software's robust risk engine is pivotal in transforming this proof into meaningful action."

This solution is designed to complement existing fraud prevention platforms used by financial institutions, smoothly integrating with products from both companies such as ChainIT Pay, RS DigitalEdge™, and Payabbhi®.

As the digital payment ecosystem evolves towards a model grounded in artificial intelligence, real-time processing, and an autonomous framework, the partnership between ChainIT and RS Software embodies a forward-thinking approach essential for navigating today's complex financial landscape. The plan to unify risk assessment with identity management holds promise for a future where TRUST emerges as a new currency in the payments sector, ensuring security and reliability for users worldwide.

For further information about their respective offerings and the implications of this collaboration, please visit ChainIT's website and RS Software's website.