Velocity Checks

Velocity checks are fraud prevention tools that measure the speed and frequency of customer actions such as logins, transactions, or account changes. Unusually high activity may indicate fraud, account takeover, or mule behavior.In AML, velocity checks are applied to transaction flows to spot structuring or smurfing attempts. Regulators expect institutions to configure thresholds that balance risk detection with customer convenience.Banks, fintechs, and payment providers implement velocity checks in real time to prevent losses and flag suspicious behavior. They are a core component of layered fraud and AML defenses.