AI Case Study

Revolut reduces bank card fraud using machine learning to detect anomalies

Revolut, the online-based challenger bank, has recently introduced machine learning as a way to detect fraudulent e-commerce activity and card theft/fraud using machine learning.

Industry

Financial Services

Banking

Project Overview

On its blog Revolut says that "over the last 12 months, we've been investing massively in our engineering and data science teams in line with our vision to automate, accelerate and improve the quality of decision-making when it comes to card fraud and money laundering. Behind the scenes, we have been building machine learning systems to develop deep insights and predictions around customer behaviour so that we can identify new fraud patterns in real time, without explicit human intervention.

These systems work by applying complex mathematical models to large sets of data in order to identify anomalies, offering a greater degree of accuracy when it comes to decision-making, and saving both the customer and the business valuable time. What this means is that we are able to build extensive data profiles on our customers to better understand their spending behaviour and patterns. Our anti-fraud systems will then be able to detect any suspicious activity in real-time, based on abnormal activity which deviates from their usual behaviour.

For example, when our systems flag something suspicious on a customer, it will automatically block the payment or transfer until the customer verifies the transaction from within the app. This process cuts out of the fat and avoids the customer having to go through a lengthy security process in order to get their account unlocked, especially for something as minor as making a payment abroad."

Reported Results

"Since we put these new systems in place about two months ago, we have seen a massive reduction in card fraud levels, specifically tackling common fraud cases such as e-commerce payments, card cloning and card theft."

Technology

Details undisclosed; "machine learning".

Function

Risk

Security

Background

Revolut is an online-only challenger bank. "We speak with banks all of the time, and we're always really shocked to learn that many of them are still relying on 100 percent manual processes for detecting fraud. When thinking about our own strategy for protecting our customers against fraud, we found this kind of dated process to be slow, expensive and often inaccurate at the expense of the customer".

Benefits

Data

Customer transactions data.