Transaction monitoring

Transaction monitoring is the process of observing and analyzing financial activity to detect unusual patterns, anomalies, and potential fraud. It helps protect the security and integrity of financial systems and reduces unauthorized transactions and losses for customers.

Example

A bank may use transaction monitoring systems to review customer account activity, including deposits, withdrawals, transfers, and purchases. By checking these transactions on an ongoing basis, the bank can spot behavior that may indicate fraud, money laundering, or other illicit activity. For example, if a customer who usually makes small, infrequent transactions suddenly starts making large, repeated transfers to an overseas account, the system may flag the activity as suspicious. That can trigger further investigation and help prevent financial loss or criminal activity.