AI-Powered Fraud Detection for FinTech: Secure Transactions, Stop Threats, and Protect Your Bottom Line
Move beyond outdated rules. Our custom AI and machine learning solutions identify sophisticated fraud in real-time, slash false positives, and ensure regulatory compliance—without sacrificing customer experience.
Trusted by Innovative FinTechs and Global Enterprises
The Silent Threat Costing You Millions
In today's fast-paced FinTech landscape, fraud is more than just a line item; it's a sophisticated, rapidly evolving threat that erodes profits, damages customer trust, and invites regulatory scrutiny. Traditional, rule-based systems are failing, creating frustrating false positives for good customers while missing complex fraud patterns. This operational drag not only increases costs through manual reviews and chargebacks but also puts your reputation and revenue at significant risk. You need an intelligent defense that adapts as quickly as the criminals you're fighting, protecting your business without hindering its growth.
Why Partner with Errna for AI-Powered Fraud Defense?
Explainable AI (XAI) for Compliance
Our models aren't black boxes. We deliver transparent, human-readable justifications for every decision, ensuring you can satisfy auditors and regulators with complete confidence.
Tailor-Made Models, Not Off-the-Shelf
Your fraud challenges are unique. We build custom machine learning models trained on your specific data to detect the nuanced threats that generic solutions miss.
Demonstrable & Rapid ROI
Our solutions directly impact your bottom line by reducing chargebacks, minimizing manual review costs, and preventing financial losses, often delivering a significant return on investment within months.
Enterprise-Grade Security & Scalability
Built on secure, cloud-native architecture and backed by our CMMI Level 5 and ISO 27001 certifications, our systems are designed to handle massive transaction volumes without compromising on security.
Seamless API-First Integration
Our solutions are designed for easy integration. We provide robust, well-documented APIs that plug directly into your existing tech stack, minimizing disruption and accelerating time-to-value.
Continuous Model Optimization
Fraud never sleeps, and neither does our AI. We provide continuous MLOps and model monitoring to ensure your defenses adapt to new threats and maintain peak performance over time.
Reduced False Positives
Protect your revenue without alienating legitimate customers. Our finely-tuned models significantly reduce false positives, improving the customer experience and preventing cart abandonment.
End-to-End Expert Partnership
From data scientists to FinTech compliance experts, we become an extension of your team. We handle the complexity of AI so you can focus on growing your business.
Two Decades of Proven Excellence
With a history dating back to 2003 and a portfolio of over 3000 successful projects, we bring unparalleled experience in delivering mission-critical technology solutions for global leaders.
Our End-to-End AI Fraud Detection Services
We offer a comprehensive suite of AI-powered services designed to create a multi-layered defense against the full spectrum of financial fraud. Our solutions are modular, scalable, and customized to address your most critical vulnerabilities.
Real-Time Transaction Monitoring
Our core service analyzes thousands of data points per transaction in milliseconds to approve, challenge, or block payments before they are processed. This is your first and most critical line of defense against payment fraud.
- Instantly block fraudulent transactions to prevent financial loss.
- Analyze location, device, and transaction history in real-time.
- Dynamically adjust risk thresholds based on evolving threat intelligence.
Payment Fraud Detection
We build specific models to combat various forms of payment fraud, including credit card fraud, authorized push payment (APP) scams, and fraudulent chargebacks, protecting your revenue streams at every point.
- Identify and flag stolen credit card usage patterns.
- Detect anomalies indicative of social engineering and APP fraud.
- Reduce chargeback rates and associated penalty fees.
Loan Application Fraud Analysis
Secure your lending portfolio by using AI to detect fraudulent applications. Our models analyze application data for inconsistencies, synthetic identities, and other red flags to prevent bad debt from ever entering your books.
- Uncover synthetic identities and stolen personal information.
- Verify income and employment data against external sources.
- Improve the quality of your loan portfolio and reduce default rates.
Insurance Claim Fraud Detection
For InsurTech, our AI models sift through claims data to identify patterns of fraudulent activity, from exaggerated claims to organized fraud rings. This reduces payout losses and keeps premiums fair for honest customers.
- Flag suspicious claims for manual review using predictive scoring.
- Analyze text and images for signs of tampering or inconsistency.
- Identify networks of colluding individuals involved in organized fraud.
Insider Threat Detection
Fraud doesn't always come from the outside. We deploy user and entity behavior analytics (UEBA) to monitor internal systems for anomalous activity, flagging potential insider threats before significant damage occurs.
- Establish baseline behaviors for all users and systems.
- Detect unauthorized access, data exfiltration, and policy violations.
- Provide early warnings to security teams for rapid intervention.
Advanced Behavioral Analytics
We move beyond static data points to analyze how users interact with your platform. By creating a unique behavioral fingerprint for each customer, we can instantly spot deviations that signal a compromised account.
- Model typical user navigation, typing speed, and device handling.
- Detect session anomalies that indicate remote access or bot activity.
- Provide a powerful, frictionless layer of continuous authentication.
Account Takeover (ATO) Prevention
Protect your customers' accounts from unauthorized access. Our AI monitors login attempts, session activity, and profile changes to detect and block account takeover attempts in real-time, preserving customer trust.
- Analyze login data for credential stuffing and brute-force attacks.
- Flag suspicious activities like password or email changes.
- Trigger multi-factor authentication (MFA) challenges for high-risk actions.
Synthetic Identity Fraud Detection
Combat one of the fastest-growing fraud vectors. Our AI systems are trained to identify the subtle hallmarks of synthetic identities—fictitious personas created from real and fabricated data—during onboarding and account creation.
- Cross-reference data points to find logical inconsistencies.
- Utilize network analysis to uncover links between fraudulent accounts.
- Prevent fraudsters from establishing a foothold in your ecosystem.
Biometric and Device Fingerprinting
We integrate and analyze advanced identity signals, including device IDs, geolocation, and behavioral biometrics. This creates a robust, multi-factor profile for each user that is incredibly difficult for fraudsters to replicate.
- Create a unique and persistent fingerprint for every user device.
- Incorporate passive behavioral biometrics for seamless security.
- Strengthen authentication without adding friction for the user.
New Account Fraud Mitigation
Stop fraud at the front door. Our AI scrutinizes new account applications, flagging high-risk sign-ups for enhanced verification. This prevents fraudsters from using your platform for money laundering or other illicit activities.
- Score new applications based on hundreds of risk factors.
- Identify connections to known fraudulent accounts or devices.
- Balance robust security with a smooth and fast onboarding experience.
AI-Powered AML & KYC Automation
Streamline your compliance workflows and reduce manual effort. Our AI automates key parts of the Anti-Money Laundering (AML) and Know Your Customer (KYC) processes, from document verification to suspicious activity reporting.
- Automate identity document verification using computer vision.
- Continuously screen customers against global sanctions lists.
- Prioritize AML alerts for investigators, reducing alert fatigue.
Predictive Credit & Risk Scoring
Enhance traditional credit scoring with AI. Our models analyze alternative data sources to build a more accurate picture of creditworthiness, enabling you to make smarter lending decisions and reduce default rates.
- Incorporate non-traditional data for a holistic risk assessment.
- Approve more creditworthy applicants who are missed by legacy systems.
- Dynamically update risk scores based on new behavioral data.
Network & Link Analysis
Uncover sophisticated fraud rings by visualizing and analyzing the hidden connections between accounts, devices, and transactions. Our graph-based AI identifies collusive behavior that is invisible to traditional analysis.
- Map relationships between entities to find fraud clusters.
- Identify single points of compromise affecting multiple accounts.
- Proactively dismantle fraud networks before they can scale.
Explainable AI (XAI) Model Reporting
Meet regulatory requirements with ease. We provide comprehensive reporting and dashboards that explain why the AI made a specific decision, providing the transparency needed for audits and compliance reviews.
- Generate human-readable reason codes for every flagged transaction.
- Provide model performance and bias-testing documentation.
- Empower your compliance team with clear, defensible intelligence.
Custom Fraud Detection Platform Development
For large enterprises with unique needs, we offer end-to-end development of a bespoke fraud detection platform. We handle everything from data infrastructure and model development to building the investigator case management UI.
- Gain a fully proprietary system tailored to your exact workflows.
- Integrate multiple internal and external data sources seamlessly.
- Own the intellectual property and have full control over your technology roadmap.
Our Proven 4-Step Path to a Fortified FinTech Platform
Discovery & Data Audit
We begin with a deep dive into your existing systems, data sources, and specific fraud challenges. Our data scientists conduct a thorough audit to assess data quality and identify the most predictive features for model development.
Custom Model Development & Validation
Using your historical data, we train and validate a suite of custom machine learning models. We rigorously test for accuracy, bias, and performance to ensure the solution is both effective and fair before it goes live.
Secure Integration & Deployment
Our engineers work with your team to seamlessly integrate the AI models into your production environment via robust APIs. We follow a phased deployment strategy, often starting with a shadow mode to prove efficacy without impacting live traffic.
Continuous Monitoring & Optimization
Deployment is just the beginning. We provide ongoing MLOps support, continuously monitoring model performance, detecting data drift, and retraining the AI with new data to keep your defenses sharp against emerging threats.
Real Results: How We Protect Leading FinTechs
Challenge: Spiraling Chargebacks and Inefficient Manual Reviews
The client's legacy rule-based system was flagging too many legitimate transactions, creating friction for good customers and overwhelming their manual review team. Meanwhile, sophisticated fraudsters were bypassing the static rules, leading to a steady increase in chargeback losses that threatened their profit margins.
Key Challenges:
- High false positive rate (over 70%) leading to customer churn.
- Inability to detect new and evolving fraud patterns.
- Escalating operational costs tied to a growing team of fraud analysts.
- Chargeback rates exceeding the acceptable 1% threshold for major card networks.
Our Solution:
We developed and deployed a real-time transaction scoring engine powered by a gradient boosting machine learning model. The solution integrated seamlessly into their existing payment flow via a low-latency API.
- Analyzed over 200 features per transaction in under 50 milliseconds.
- Implemented behavioral analytics to create dynamic user profiles.
- Developed an XAI dashboard for analysts to understand model decisions.
- Automated the approval of low-risk transactions to reduce manual workload.
Challenge: Preventing Account Takeover and New Account Fraud
The client faced a surge in Account Takeover (ATO) attacks and an influx of fraudulent new accounts created with synthetic identities. This not only led to direct financial losses but also posed a significant compliance risk and threatened the trust of their user base.
Key Challenges:
- High volume of ATO attempts from credential stuffing attacks.
- Inability to distinguish synthetic identities from legitimate new users.
- Reputational damage from compromised customer accounts.
- Pressure from regulators to strengthen KYC and anti-fraud controls.
Our Solution:
We implemented a multi-layered AI defense system focusing on both onboarding and ongoing account monitoring. This included a synthetic identity detection model and a behavioral analytics engine for ATO prevention.
- Used network analysis to identify links between fraudulent applications.
- Deployed behavioral biometrics to detect anomalies during user sessions.
- Created a risk-based authentication flow that triggers MFA for suspicious actions.
- Automated the cross-referencing of application data with third-party sources.
Challenge: Inaccurate Credit Risk Assessment and High Default Rates
The client's reliance on traditional credit scores was proving insufficient for their target market. This led to both high default rates from risky borrowers and the rejection of creditworthy applicants who lacked a conventional credit history, limiting their market potential.
Key Challenges:
- High loan default rates impacting platform profitability.
- Inability to accurately assess risk for "thin-file" applicants.
- Lengthy and manual underwriting process for borderline cases.
- Competitive pressure to make faster and more accurate lending decisions.
Our Solution:
We built a predictive credit risk scoring model that augmented traditional credit data with alternative data sources, such as business cash flow, online presence, and industry-specific metrics.
- Integrated multiple APIs to pull in and process alternative data in real-time.
- Used machine learning to identify non-obvious predictors of repayment behavior.
- Provided a clear risk score and contributing factors for each applicant.
- Automated the decisioning for a majority of applications, freeing up underwriters.
The Technology Powering Your Protection
Hear From the Leaders We Protect
"The Errna team are true partners. Their expertise in both AI and the intricacies of financial regulations is unmatched. They delivered a solution that not only works flawlessly but also gives our compliance team complete peace of mind."
"We saw a significant reduction in false positives within the first month. This improved our customer experience overnight and freed up our support team to focus on genuine user issues instead of handling complaints about blocked transactions."
"The ROI was clear and fast. The reduction in chargeback losses paid for the entire project in under nine months. I can't recommend their AI fraud detection services highly enough. It's a must-have for any serious FinTech."
"Their ability to detect sophisticated account takeover attempts is incredible. The behavioral analytics engine caught threats our previous system was completely blind to, saving our customers and our reputation."
"The integration process was surprisingly smooth. The Errna team's API-first approach and clear documentation made it easy for our engineers to get the system up and running ahead of schedule. Their professionalism is top-notch."
"As a startup, we needed an enterprise-level solution without an enterprise-level price tag. Errna's flexible engagement model allowed us to get the protection we needed within our budget. They are a key partner in our growth."
Frequently Asked Questions
Rule-based systems are static and can only catch known fraud patterns. They are brittle, require constant manual updates, and often generate high false positives. AI, on the other hand, learns from data, adapts to new and unseen fraud tactics in real-time, and understands context, which dramatically reduces false positives and improves detection rates for sophisticated threats.
This is a common and valid concern. We specialize in Explainable AI (XAI). Our solutions are designed to provide clear, human-readable reason codes for every decision the model makes. This transparency ensures you can fully satisfy regulatory and audit requirements while benefiting from the power of machine learning.
Timelines vary based on complexity and data readiness, but a typical implementation follows a phased approach. A pilot or proof-of-concept can often be live within 6-8 weeks. A full production deployment and integration usually takes 3-6 months. We prioritize a rapid time-to-value without disrupting your existing operations.
We typically require historical transaction data, including both legitimate and known fraudulent events. Key data points include user information (anonymized), transaction details (amount, currency, etc.), device and IP data, and timestamps. During our initial Discovery & Data Audit phase, we work with you to identify all relevant and available data sources.
Our solutions are built with an API-first philosophy. We provide a secure, low-latency REST API that your systems can call to get a real-time risk score for any transaction or user action. Our engineering team provides full support and documentation to make the integration process as smooth as possible for your developers.
Quite the opposite. Our primary goal is to *reduce* friction for good customers. By accurately identifying high-risk activity, we eliminate the need for the broad, indiscriminate security hurdles that legacy systems impose. This leads to fewer false positives, less step-up authentication challenges for trusted users, and a smoother overall customer experience.
Ready to Eliminate Fraud and Secure Your Growth?
Stop letting fraudsters eat into your profits and damage your reputation. Schedule a free, no-obligation consultation with our AI and FinTech experts to discover your specific vulnerabilities and see how a custom AI solution can deliver a powerful ROI.