What is meant by Transaction monitoring?
The term "transaction monitoring" refers to the continuous observation and analysis of financial or business transactions in real-time to ensure their proper execution, detect errors early, and prevent potential fraud attempts. This monitoring covers tracking all steps of a transaction from initiation to completion and provides detailed insights into transaction processes and security.
Typical software functions in the area of "transaction monitoring":
- Real-Time Monitoring: Continuous tracking of transactions in real-time to quickly identify discrepancies or errors.
- Error and Exception Reporting: Automatic generation of reports for faulty or incomplete transactions.
- Fraud Detection: Implementation of algorithms to identify suspicious patterns or activities indicative of fraud.
- Notification and Alert Systems: Automated notifications or alerts in cases of suspected fraudulent activities or transaction issues.
- Data Analysis and Reporting: Analysis and reporting on transaction patterns, risks, and key performance indicators.
- Audit Trails: Complete documentation of all transaction steps for later review and auditing purposes.
- Transaction History: Access to a full record of past transactions for analysis and traceability.
Examples of "transaction monitoring":
- Real-time monitoring of all credit card payments in an online store.
- Automated alerts for suspicious account activities that indicate fraud attempts.
- Analysis of transaction data to identify trends in payment delays.
- Review and documentation of each phase of an international money transfer.
- Detection of unusually large money transfers and automatic freezing of the account.