Key Challenges
Rising Fraudulent Transactions
Increasing transaction volumes led to more frequent fraud incidents, posing financial and reputational risks
- The fintech company faced a surge in fraudulent activities, including identity theft and unauthorized transactions, due to the limitations of their existing fraud prevention system. The inability to detect these issues promptly resulted in significant losses and reduced customer trust.
Slow Detection Times
Delayed identification of fraudulent activities increased the risk of financial loss.
- Traditional rule-based systems couldn’t keep up with the speed required to analyze high transaction volumes. This led to delays in fraud detection, allowing fraudulent activities to go unnoticed until they had caused considerable damage.
High False-Positive Rates
Legitimate transactions were frequently flagged as fraudulent, inconveniencing customers.
- The existing system often incorrectly identified legitimate transactions as suspicious, causing unnecessary disruptions for customers and reducing the efficiency of the fraud detection process. This eroded customer trust and increased the workload for manual review teams.