Blog

November 30, 2022

Fintechs as one. A new way to combat fraud through collective intelligence

Fintechs as one. A new way to combat fraud through collective intelligence

Let's talk about a collaboration network between Fintechs to stop fraud


As a result of the covid-19 pandemic, more Mexicans have joined the digital economy, particularly financial services. Unfortunately, along with this, online fraud threats grew exponentially and one of the most affected sectors was fintech.


As a result of the Covid-19 pandemic, more Mexicans have joined the digital economy, particularly financial services. The increase in this type of transaction is significantly beneficial, since making a purchase or paying for a service is as simple as clicking on your cell phone.


Unfortunately, along with this, online fraud threats grew exponentially and one of the most affected sectors was FinTech.


At Bayonet we estimate that digital fraud attempts in Mexico grew four times as of 2020, but these threats are also becoming more sophisticated, which makes more and more companies vulnerable to these attacks.

Ilustración de letras palabra fintech (tecnología financiera) | Vector  Premium
have you ever wondered how safe it is to do business online?


For Fintech companies, the problem is even greater, not only because they are one of the main targets of fraud, but also because it is an industry with great growth potential, which has also allowed thousands of Mexicans to access products and best digital financial services.


According to data from the Bank of Mexico (Banxico), Mexico ranks second in Latin America in terms of fraud threats, which is a bleak picture for the new disruptive players in the digital environment.


A COLLABORATION NETWORK BETWEEN FINTECHS TO CURB FRAUD


Today, many FinTechs, aware of these challenges, have launched fraud detection strategies, but for the most part they are limited, since they only take their own user base as a reference, and to achieve sustained growth that faces the evolution of threats, collaboration between companies in the same sector is necessary in order to create a support network.

Let us remember that in the digital world, transactions are executed in milliseconds, that is why it is important to act in an agile and assertive manner. Fintech companies cannot afford to lose the trust of their users by stopping threats late or in a biased way, much less rejecting a potential client.

Unlike other sectors, digital financial services base their value offer on flexibility, better user experience and security because, who could use their money or would do business with companies that do not care about taking care of themselves and their users?



Claves para entender la industria FinTech - Portal Innova

THE SOLUTION IS IN FRONT OF YOU

At Bayonet we design a fraud prevention system based on collective intelligence. This operates as a new digital reputation bureau, through which companies safely exchange key data to optimize fraud detection.


The exchange of information has been invaluable for this sector. Our data shows that between 15 and 52% of attacks come from recurring fraudsters, who go from one Fintech to another. Thus, when these users are detected by a Fintech, the rest of the network is automatically protected and the fraudster's chances of success are considerably reduced.


Despite the fact that Mexico already has two credit bureaus, their information is not entirely functional for Fintechs, as we must remember that the majority of users of these financial platforms do not have traditional financial services and therefore are not in these bureaus.


In addition, to achieve a more accurate fraud detection, it is important to add alternative variables such as IP addresses, emails, device risk signals, social networks, telephone numbers, among others. At Bayonet we have created a collective intelligence network that includes large Fintech companies such as RappiBank, UnDosTres, Moneypool, Pagaloopy Dapp, to name a few.


We also have PCI Level 1 security certification granted by the Payments Card Industry to comply with security processes and data crossing is only done through masked information.


If you want to know more about our services, come to us and discover how we can help you grow. Request a demo and let's transform the internet into a safe place to do business. Write to info@bayonet.io.

BACK TO ALL