The New Reality of Cross‑Border Risk
- admin cys
- 2 hours ago
- 3 min read
A Report by CYS Global Remit FinTech Development Unit
Over the past few years, digital scams, mule-account networks and cross-border fraud have evolved from isolated incidents into a systemic risk within Singapore's financial system. For remittance users, the stakes are particularly high. These transactions are often urgent and emotional—sending money home to support family—and involve counterparties in other countries whom senders may never have met face-to-face. Scammers exploit precisely these vulnerabilities through sophisticated social engineering tactics, fake investment schemes and "help your family" narratives designed to bypass rational scrutiny.
Regulators have responded decisively. Today, every player touching cross-border flows, including non-bank remittance providers, must deploy bank-grade controls. This encompasses customer due diligence, ongoing transaction monitoring, sanctions screening and robust technology-risk management, all calibrated to the realities of always-on, instant payments.
The fundamental mindset shift required is this: compliance cannot be an afterthought or a back-office function that occasionally blocks a transaction. For a modern remittance fintech, safety must be treated as a core product feature, as fundamental as speed or foreign exchange pricing.
Designing "Safe by Default" Customer Journeys
In practice, embedding safety into the product means rethinking every touchpoint in the customer journey. Consider these key strategies:
Dynamic onboarding: Deploy risk-based KYC that remains smooth for straightforward cases whilst automatically introducing friction—additional questions, document checks—when risk signals emerge.
Behaviour-aware limits: Begin with lower initial limits for new users, then unlock higher thresholds only after they demonstrate consistent, low-risk behaviour over time.
Smart corridor policies: Build stricter checks for high-risk destinations or recipient types directly into routing logic, rather than relying on manual exceptions after the fact.
These controls should operate invisibly when risk is low and become highly visible when risk is elevated, with clear explanations so customers understand that extra steps exist to protect their money, not obstruct their transactions.
Harnessing Data and AI Responsibly
To keep pace with fast-evolving scam patterns, remittance fintechs need to harness data and artificial intelligence responsibly. Machine-learning models can identify unusual behaviour—new devices, atypical transfer sizes, sudden bursts of activity to new countries—far more rapidly than rule-based systems alone.
When a pattern trips multiple risk flags, the system can trigger real-time interventions: in-app warnings, temporary holds, or a call-back to verify intent before releasing funds. This proactive approach transforms risk management from reactive damage control into preventative protection.
Equally important is collaboration. In a hub like Singapore, no single institution sees the full picture. Participating in information-sharing initiatives, industry roundtables and regulator-led consultations helps align typology libraries, red-flag indicators and best practices across banks and fintechs alike. A remittance fintech that actively contributes data and insight to the ecosystem reinforces its position as a responsible, long-term player rather than a transient opportunist.
Building a Trust Premium
For many customers, one lost transfer can wipe out months of savings. Consequently, perceived safety increasingly trumps marginal fee differences when choosing a remittance provider. A fintech that clearly explains its protections—24/7 monitoring, strong authentication, behavioural analytics, rapid incident response—builds a trust premium that competitors cannot copy quickly.
This advantage is especially powerful in migrant and SME segments, where word-of-mouth remains critical. Communities talk about who resolved issues fairly, who intervened before a scam succeeded, and who provided proactive education in their language. By investing in transparent policies, fair dispute handling and educational campaigns, a fintech evolves from "cheap and fast" to "the partner that has your back."
The landscape of cross-border payments has fundamentally changed. Scam prevention and anti-money laundering are no longer compliance checkboxes—they are defining product features that determine whether customers trust you with their hard-earned money. The fintechs that recognise this reality and embed safety into every layer of their service will not only meet regulatory expectations but will earn the loyalty of communities whose financial security depends on getting it right.
If your business or community depends on cross-border payouts and you want a partner that treats scam prevention and AML as core product features—not box-ticking—reach out to our team to co-design a "safe by default" remittance experience for your most important corridors.
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