The Challenge: Future-proof fraud prevention across channels

The banking industry has seen rapid technological advancements, creating more opportunities for fraudsters to exploit payment channels. Raiffeisen Bank International (RBI), a prominent European bank with 12 subsidiary banks, recognized the need to strengthen its fraud detection capabilities to tackle this escalating threat. To go beyond payment data and effectively combat fraud, RBI decided to incorporate behavioral and device-related information into its detection methods.

To enhance its fraud detection capabilities and ensure a seamless customer experience, RBI implemented a strategy of gradually augmenting payment data with behavioral and device data points. Recognizing the significance of capturing information beyond the payment itself, RBI combined behavior, device, and network enrichment data. This approach aimed to strengthen fraud detection while maintaining a smooth and hassle-free experience for customers.

RBI’s primary objective was to integrate enrichment data with its risk engine to gain a deep understanding of the customer journey. Transparency and simplicity were also crucial requirements for RBI, ensuring its team comprehended the data collected, its gathering process, integration with the risk engine, and its impact on risk scoring. Moreover, the solution had to be easy to manage independently, minimizing the complexity of managing thousands of rules.

“At that moment we decided that we needed to shift from just sitting at the end of the customer journey to expanding it to the beginning of the customer journey – right from when the login is happening.”

Why RBI Chose Feedzai’s Digital Trust Solution

RBI turned to Feedzai, a trusted partner since 2018, because of our proven reliability, innovation, and knowledge-sharing history.

In the three years since Feedzai and RBI’s relationship started, Feedzai had launched Digital Trust, a state-of-the-art solution that enriched transaction data with behavioral biometrics, device analysis, and network information. Compared to other rules-only vendors, Digital Trust’s hybrid AI approach allowed for more efficient management of thousands of data points per second. The search functionality and speed of Digital Trust allowed RBI to enrich payments with login events in well under a second, which is critical for real-time fraud detection and reaction. Feedzai’s strong focus on user experience also ensured seamless usability and an enhanced visual experience.

RBI Modernizes Fraud Protection with Feedzai Integration

Feedzai adapted Digital Trust’s integration to fit RBI’s legacy enrichment vendor, allowing expedited deployment. By reengineering the existing process, RBI eliminated the need for remote calls to Feedzai’s data centers and achieved lower latency, significantly improving their service level agreement. Continuous capturing of device and behavioral data updates throughout customer activity, rather than just at login, enhanced the accuracy of the enriched data.

Feedzai collaborated closely with RBI, identifying the necessary implementation of JavaScript on various pages and locations. The two teams worked together throughout the process, ensuring seamless preparation, integration, and testing. Weekly training and regular communication occurred until the successful go-live of each subsidiary deployment.

Results: 37% improvement in fraud detection rates

RBI’s collaboration with Feedzai and the adoption of Digital Trust gave RBI access to a data enrichment system that further enhanced and strengthened its fraud detection capabilities. By incorporating behavioral biometrics, device analysis, and network enrichment, RBI achieved a holistic approach to fraud prevention. RBI was also impressed by Feedzai’s attentive team who were very receptive to frequent inputs and demonstrated a mindset devoted to listening, improving services, and meeting their client’s expectations. Our team’s laser focus on delivering a top-notch customer experience was critical to enhancing the relationship between the two organizations.

The integration of Digital Trust has resulted in a remarkable 37% improvement in their fraud detection rates, demonstrating the solution’s effectiveness.

In the digital age, relying solely on generic rules to prevent fraud can result in high costs and unsatisfied customers for any financial institution.

This was the case for a large North American retail bank, which was struggling to tackle a growing alert queue, low job satisfaction within its fraud team, and missed fraud cases. These issues hindered the bank’s ability to offer new products and payment channels to customers.

Feedzai was tasked with improving detection without entirely replacing the incumbent solution. Through a successful hybrid offering, Feedzai saved the bank $30 million over three years and dramatically reduced false positives.

The existing rules-only system couldn’t keep up with the fast-paced digital world, leading to over 15,000 outstanding alerts and growing. The bank needed a real-time transaction fraud detection solution for all payment channels, as well as an established, knowledgeable, and proactive long-term partner.

The bank chose Feedzai due to our expertise in adaptive machine learning-based fraud detection and our commitment to being a proactive, long-term partner focused on innovation and seamless integration with the bank’s existing systems.

Feedzai provided a modular solution by embedding its machine learning algorithms as an overlay to cover existing deficiencies, allowing the bank to retain control of autonomy, flexibility, and speed in creating, implementing, and reviewing its risk strategy at any given time.

Feedzai specialists worked with the bank’s in-house team to integrate necessary transactional API calls with the Kafka streaming engine for analyzing historical and real-time data.

Next, we integrated alerts with the third-party case management tool, which included a feedback loop of fraud outcomes.

Feedzai also led an immersive two-week learning experience for the bank’s data science team to maximize results.

Feedzai not only exceeded the bank’s expectations for preventing fraud losses, we also empowered the bank to do more with its own data and third-party data in a short amount of time. We also empowered the bank to do more with its own data and third-party data in a short amount of time. This successful project saved the bank $30 million in its first three years and is now driving the next phase to increase efficiency and drive down costs.