Fraud Management In Fraud Management

Fraud Management team together with Data Science and Advanced Analytics department create a new machine learning based solution to identify and prevent possible fraud activities

Frauds are as old as the human race and fraudsters always have and always will be following the money. If we look from their perspective 4finance product webpages could be compared to online shops where money is sold in bank transfer or cash format – they just need to come and get it.

Companies and governmental institutions across the world are aiming to be as innovative as possible to provide the best user experience they can have. There`s a cost of risk behind each new solution and outstanding and evolving user experience which is great for the customer also bears

Fraud never sleeps and fraudsters` strategies change all the time. Therefore, thanks to both Oleg Kuzmin, Data Science Innovation Director, and Agris Vaselāns, Senior Data Scientist, inspiration and encouragement, Fraud team in collaboration with Data Science and Advanced Analytics department started to look into machine learning based solution to identify and prevent always changing fraud activities.

The Advanced Fraud Analytics project covers the baseline of the fraud management to understand with whom we`re doing business with. It is crucial to identify characteristics and patters of both good and bad customers. Machine learning models, GBMs in particular (click here to read more about GBM), opens the door to understand intentions of the new customers – it creates data driven customer profile before starting a long-term relationship with them. and make the right decision of sorting corrupt customers from trustworthy ones’ prior losing large amount of money due to the mistaken consumer profile

We joined together our amazing and talented 4finance colleagues in one team, kicked-off the project in the middle of February and designed desired solution putting together 4finance business needs, fraud requirements, data science expertise and advanced IT development & QA skills. In less than 3-month period we were able to create our own 4finance advanced fraud prevention solution. The first solution was a know-how for our Spanish market, where we tested if our developed technology and solution fits 4finance business needs. Test lasted for another two months and was very successful and now we can proudly say that we have a proud prevention solution which is beneficial for our team and can be rolled out to other