Expanding Business Horizons via Global Marketplaces

With the advent of advanced digital networks, numerous business owners have ventured into previously untapped global markets. Despite the promising opportunities, cross-border operations present significant challenges extending beyond currency conversions and physical delivery logistics. Among these is the issue of counterparty risk, which arises due to the fragmented verification processes often relied upon in current cross-border payment systems.

The Unaddressed Gaps

While the global market holds immense allure for businesses, these organizations face inherent risks. According to data from the Bank for International Settlements, cross-border payment volumes are expected to reach $250 trillion by 2027, significantly boosted by increased participation.

The challenges stem largely from the correspondent banking model, which has been a cornerstone of international payments. This model involves a chain of foreign and domestic banks collaborating on individual payment processes, leading to extended transaction times and high fees.

Additionally, transparency is limited throughout the payment journey, and regulatory compliance and currency considerations add layers of complexity. Manual verification processes are prone to errors and misrouting.

Financial Risks Posed by Cybercrime

Criminals take advantage of these vulnerabilities. In 2025, global businesses lost an average of 7.7% of their annual revenue to fraud—totalling about $534 billion.

“According to a TransUnion report,” stated Jennifer Pitt, Senior Fraud Analyst at Javelin Strategy & Research, “U.S. companies lost an average of almost 10% of their annual revenue to fraud.” She emphasized that addressing unmet verification and prevention gaps is crucial for safeguarding company finances.

Technological Threats

Bad actors now leverage advanced technologies to enhance fraudulent activities. For instance, account takeover attacks have become more prevalent due to improved hacking methods. The FBI Internet Crime Complaint Center has reported an increase in such incidents.

Furthermore, artificial intelligence is being used to craft sophisticated phishing messages and create deepfake identities. A SlashNext report indicates a 4,151% rise in business email compromise (BEC) and advanced phishing attacks since open-source AI was introduced in late 2022.

Organized criminal networks further exacerbate these issues by using cross-border channels for money laundering and terrorist financing. This necessitates a more integrated approach to fraud prevention and AML compliance across all functions.

Addressing Manual Processes

To mitigate these risks, organizations must shift away from manual processes that expose them to greater vulnerabilities. Automated tools can significantly expedite the identification of counterparties, making it easier to uncover potential criminal rings.

“These tools help in flagging suspicious activities by detecting reused identity elements,” explained Pitt. This is essential for identifying synthetic identities and money mule accounts—key typologies used in fraud and money laundering schemes.

The Role of Technology

LSEG Risk Intelligence’s Global Account Verification (GAV) platform offers a solution by providing real-time verification of bank account ownership across more than 45 countries. It helps in minimizing risks associated with unauthorized payments, fraud, and compliance issues.

“Understanding counterparties as thoroughly as one understands each customer is paramount,” Pitt concluded. “This holistic risk assessment approach is critical for maintaining compliance and preventing financial loss.”