CASE STUDY:

Transforming a fintech’s numbers with fraud and identity risk management

A large fintech firm suffered from low Know Your Customer (KYC) and Customer Identification Program (CIP) performance across their banking products. Our team brought the right analytics and dashboarding to the table to make informed recommendations for their scorecards, rules, and outcomes. 

Previously, due to client decisioning and a lack of analytics, their initial “legacy” decline rate was around 10 percent. But once they followed Paladin’s recommendations to enhance their existing CIP and KYC vendor responses and decisioning, that decline rate dropped to just 3 percent. We also helped guide their implementation of document verification processes and managing settings to be within regulatory compliance expectations.

All in a day’s work: $10M fraud ring identified

As part of this client engagement, Paladin leveraged account opening analytics to accurately identify a fraud ring that had perpetrated approximately $10M in losses for the client. Paladin was able to recommend scorecard enhancements for CIP to catch 90 percent of “bads” entering their ecosystem at account opening. 

CASE STUDY:

Getting to the bottom of a prepaid card service’s fraud problem

A fintech client that sells prepaid, reloadable credit cards was suffering from a costly fraud problem. Paladin identified tens of millions in fraudulent activity as well as hundreds of millions of dollars in money laundering placed on cards through their program. This led to implementing several measures to mitigate against this type of fraud and money laundering moving forward. 

Data mining and analysis was used to identify downstream fraudulent activity the client hadn’t noticed to date. This gave us the ability to go upstream to determine account access schemes (new account fraud and account takeover) as well as funding schemes (UI, PPP, SBA, and ACH) to determine how the bad actors were gaining access to accounts to fund and transact.

Uncovering a ponzi scheme and alerting our client

During this client engagement, Paladin also identified an ATM “ponzi scheme” in which bad actors were recruiting real people to buy reloadable cards, fund them, go to ATMs, get cash, file a dispute for mis-dispense, receive provisional credits, reload other prepaid cards, and repeat the scheme indefinitely. Armed with this knowledge, the client was able to act. 

CASE STUDY:

Going beyond knowledge-based authentication

Knowledge-based authentication (KBA) has major limitations—and one of the world’s largest credit bureaus was ready to embrace a better practice. They brought Paladin on to help implement and further develop an identity risk management platform to replace their KBA program for accessing workforce management and US consumer credit profiles. We helped design and build strategies, implement the platforms, and operationally execute the improved system. The credit bureau’s employees could now even gain access to their payroll and W2s online and in the call centers.

We then architected and helped implement further expansion of the system for their consumer-facing websites, IVRs, and call centers across the US as well as Canada, Australia, and the UK.

CASE STUDY:

Setting standards for crypto security 

A prominent fintech bank sought to grow their crypto portfolio while setting standards for regulatory compliance, goodwill, and understanding. Paladin partnered with them to create standards for CIP,  fraud prevention policies, procedures, data dashboarding, and fraud system implementation for wires (incoming and outgoing). We then helped them run an RFP for crypto risk assessment vendors, setting the fintech up to successfully and securely lead into the future.

Bringing key players to the roundtable

Paladin has also partnered with a major payment processor to facilitate crypto roundtables for their merchant exchanges. We established the agenda, invited external guests for presentations, and facilitated the meetings. And, we offered insights into the merchant and financial fraud world as well as thought leadership on vendors in the fraud mitigation space.

CASE STUDY:

From assessment to implementation, managing risk for global ecommerce 

It’s a nonstop challenge for ecommerce retailers to stay a step ahead in the fraud management game. Recently, Paladin has helped several global merchants, including a household-name footwear company and a well-known home improvement brand, assess and implement an improved fraud management program. 

We facilitated the process through our three-phase approach including discovery, recommended updates, and support implementing those updates. We also conducted analysis on fraud disputes, transactional risk management, account (profile) creation, and guest checkout.

Our process went deep during these engagements, putting our full expertise and capabilities to work. We went so far as to perform assessments of these companies’ operational structures, including talent assessment. And we delivered valuable recommendations for their operations, strategy, technology, training, and personnel as well as strategic execution. By implementing these recommendations, these organizations were able to more accurately identify and reduce fraud—and more effectively fast-track legitimate users through their ecommerce platforms. 

CASE STUDY:

Setting defenses against crypto fraud and identity risk in fintech  

Two prominent fintechs—a crypto currency investment platform and a company launching a gaming card—recently enlisted Paladin for support. We stepped up to configure their fraud and identity risk platforms and deliver detailed policy documentation related to identity theft, fraud risk, and abuse. We also helped them implement and configure the rules and strategies for their transactional risk fraud management platform. 

The result: each of these companies can now deliver more rapid, seamless onboarding of client accounts. And, each enjoys improved across-the-board defenses from fraud. 

CASE STUDY:

Analyzing the competitive market and delivering valuable insights 

Armed with a depth of knowledge, a breadth of experience with an array of solution providers, and extensive industry relationships, we’re strategically positioned to assess solutions relative to industry competitors—and assess the evolving demands of end users.

Recently, we channeled this expertise and experience to complete competitive market analyses for a well-known fraud decisioning platform and for a global payment service provider offering a similar white-label solution. In each instance, the companies received the insights they needed to fuel intelligent decisions on go-to-market timing—and to maintain long-term viability.

Read the latest Paladin Vendor Report here, and reach out with your own questions about how we can fight fraud for you.