Rate Limiting
Overview
Rate limiting is a control mechanism that restricts the number of requests a user, device, or IP can make to an application within a defined period. It protects financial systems from brute-force login attempts, credential stuffing, and denial-of-service attacks. In compliance workflows, rate limiting helps secure API-based verification services such as KYC, KYB, and transaction monitoring, ensuring fair usage and preventing abuse. By throttling suspicious traffic, rate limiting also supports data privacy obligations and service availability. Banks, fintechs, and ID verification providers configure dynamic thresholds based on user behavior, applying stricter limits for high-risk patterns while maintaining usability for legitimate customers.
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FAQ
Why is rate limiting important?
It blocks automated attacks, reduces fraud exposure, and ensures systems remain available.
How is it applied in compliance?
APIs for KYC or onboarding enforce request quotas to stop abuse and preserve fairness.
What are common techniques?
Fixed windows, sliding logs, and token buckets balance security with performance.
What’s the risk of overuse?
Too-strict limits may frustrate genuine customers, so thresholds must be tuned.