As payments initiate and settle faster than ever, fraud now manifests in milliseconds — at speeds where manual prevention is not just ineffective, but impossible. Meanwhile, scammers are capitalizing with high-urgency, high-stakes tactics where funds are moved almost instantly on receipt.
Recently, we spoke with Colin Parsons, Nasdaq Verafin’s Vice President of Fraud Product Management, about a decade of dedication to real-time analysis, why milliseconds matter, and what proactive fraud prevention requires.
Dedicated to Real-Time Analysis
For nearly ten years, Nasdaq Verafin has delivered true real-time interdiction APIs, empowering financial institutions to assess payments in sub second timeframes. With real-time support for ACH, wire, TCH-RTP, FedNow and check deposits, the business continues to push the boundaries of speed and precision — advancing analysis in step with today’s evolving landscape of fraud schemes and scams. According to Colin, this dedication is a matter of philosophy. “Whenever we’re combating a new fraud or scam typology, we’re focused on it from a prevention standpoint. As this activity accelerates with the speed of payments, we want losses stopped immediately.”
This commitment requires ambitious performance milestones, from continually reducing response times to expanding the pre-computation of critical evidence. As Colin put it, “the amount of analysis we return in under a second — looking at account history, behavioral patterns, consortium data — is tremendous. This precalculation of evidence means when a suspicious payment arrives, we’re ready to alert with sub-second response times.”
Why Milliseconds Matter
Real-time analysis is essential in a world where milliseconds make the difference between prevention and recovery. “Fraud can occur at the click of a button,” said Colin. “You’re looking at a split-second decision to stop a scam or fraudulent payment — literally less than a blink of an eye.” In these scenarios, conventional, post-transaction monitoring puts financial institutions in a reactive position, increasing loss exposure and operational pressure, and makes expanding into faster digital channels highly risky.
When a fraud scheme or scam is successful, criminals hastily transfer funds onward, leaving financial institutions to navigate an onerous recovery process and less-than-ideal client experience. As Colin noted, “recovering funds after a fraud can be incredibly challenging. You’re contacting other institutions, arranging hold harmless agreements, trying to pull back wires or ACH transfers — all of which can take weeks, if it’s successful at all. That can be avoided by stopping the fraud early, in real time.”
Stopping Fraud & Scams Earlier Than Ever
Fraud schemes and scams are a process, not a moment — one that starts with manipulation and ends with laundering. The earlier this chain is disrupted, the more effectively institutions can prevent loss and interrupt downstream illicit activity. Colin sees real-time analysis as central to advancing proactive fraud and scam prevention. “The more we can prioritize prevention earlier in the fraud lifecycle, the better job we can do — not just stopping the initial fraud but preventing the downstream effects that follow.”
Nasdaq Verafin’s analytics detect suspected money mules based on real-time feedback from over 2700 financial institutions. As fraudulent activity is identified, Nasdaq Verafin includes the potential mule account in any future analysis. This ensures financial institutions do not transact with a money mule known by our network. “Once an account has been identified as the intended recipient of fraud, that intelligence feeds back into our consortium. Any future payments going to that account can immediately be treated as higher risk,” said Colin. It’s a process that relies heavily on real-time analysis — and enables the industry to take a proactive stance against financial crime. “Fraudsters put a lot of effort into setting up mule accounts. When we stop the payment and identify that account early, we effectively end the value of that mule account.” Nasdaq Verafin’s real-time analysis breaks the fraud chain before money laundering even begins.
Further Forward, Faster
As the industry leader in anti-financial crime technology, Nasdaq Verafin is constantly innovating to keep its clients a step ahead. According to Colin, the next evolution of real-time analysis is about intervening earlier in the fraud and scam lifecycle. “The path forward is really about getting further and further up the chain and earlier in the process of fraud happening,” said Colin. “It involves identifying risk before the payment is even initiated — at the point a payee is being added, or by recognizing signals that someone may be falling for a scam.”
As payments continue to move faster, effective fraud prevention will require both earlier insight and real-time execution. At Nasdaq Verafin, that combination continues to guide how real-time analysis is designed — not as a feature, but as a foundation.
About the Expert:
Colin Parsons
Vice President – Head of Fraud Product Strategy, Nasdaq Verafin
Colin Parsons spearheads the strategic development of technology solutions to combat fraud at Nasdaq Verafin. Throughout his time with the company, Colin has worked as a development team lead, software developer and in product marketing. Applying the knowledge gained through his roles and experiences, Colin is focused on using technology to solve the hard problems that are persistent within the fraud space.
