Top Fraud Detection Platforms in India

Artificial Intelligence (AI) has been garnering increased preferance in the past few years across businesses as its potential is being discovered by many. The role of AI seems to have significance in the banking and financial services (BFS) sector. The Reserve Bank of India (RBI) showed a recent report in response to an RTI petition about how the BGS sector can benefit from AI.  There has been a sharp rise in fraudulent practices by hackers in the recent past with Indian banks reporting fraud worth Rs.4.92 trillion as of March 2021 as per official data. The current and ever-increasing digital payment system is vulnerable to many kinds of frauds and the BFS industry has to integrate robust fraud check and management tools. There are five ways in which the sector can leverage technology for enhanced security:

Clari5 – Clari5 was established in 2006 and is one of the leading fraud detection and financial crime risk management software products in the market. This Bengaluru-based platform caters to the Tier-1 banks in more than 15 countries and processes data generated by over 10 billion transactions for real-time, cross-channel enterprise fraud management and anti-money laundering. Clari5also boasts of the world’s biggest fraud analytics implementations with  200 million financial accounts at a single site. The platform has intelligent models based on neural networks, time series and complex analytics to provide insights into fraud and risks. It raised Series A funding of $4 million from investment firm JAFCO Asia in 2011 and also received funding from Microsoft Accelerator. It collaborated with EY in 2015 to support banks in fighting against enterprise fraud by linking the forensic capability of EY’s fraud investigation and dispute services (FIDS) practise, and Clari5’s cross-channel fraud management to present specialised solutions. Clari5 has tied up with Microsoft, RedHat, Cisco and Intel to co-provide real-time fraud management and customer experience solutions to financial institutions.

Globsyn 3rd.Life: Established in April 2017, Globsyn 3rd.Life has developed products and solutions to help banks remain compliant with all necessary international SWIFT-related Customer Security Programme (CSP) and Reserve Bank of India’s SWIFT-related mandates (as published in its February 2019 circular). It also helps detect abnormality in cross-border payment transactions. 

Trustcheckr This is a Bengaluru-based startup that was founded by Adhip Ramesh and Shivraj Harsha. It empowers organisations with enhanced digital safety for organisations and individuals by pre-empting digital frauds in the rapidly increasing online transactions with digital data that is available across the web including deep and dark web data. It seeks to identify and eliminate fraudulent digital identities from the web for safer business for both individuals and companies. TrustCheckr offers cross industry fraud insights platform using APIs and provides TrustCheckr Score to enable organisations and individuals to identity the risk associated such as APIs:TrustCheckr Digital Identity Verification; TrustCheckr Phone Risk; TrustCheckr Email Risk; TrustCheckr Web Risk. With the help of TrustCheckr APIs, organisations can benefit from 25% reduction in fraud rates during on-boadring30% increase in automation15% decrease in manual reviews18% savings in overall costs. 

Simility – This is a Paypal owned Hyderabad startup that was started in 2014. Based in Palo Alto-based Simility offers cloud-based and on-premise fraud detection software solutions. It gives an adaptive fraud prevention solution which delivers enterprise-level performance and scalability. The solution identifies complex fraud and abuse in real-time by ingesting any type of data – structure, unstructured and third-party data. This product can be operational together with a complex device history plus new data feed and provides value in just a few hours without requiring assistance from developers. It utilizes machine learning, and gives deep insights to users on user behaviour and also uses ML to feed data back into an instant data label for optimal cross-channel and fraud detection capabilities. The rules and models can be easily updated without having to write a single line of code. It uses the simple user interface that lets data analysts smoothly configure rules which can then give a 360-degree view of the customer with drill-down analysis, decision workflows and network graphs. In 2018, PayPal Holdings acquired the startup for $120 million in cash. The company had raised around $25 million in funding prior to that also. 

RazorpayThirdwatch – Razorpay acquired Gurugram-based fraud analytics startup Thirdwatch. The platform is one of the most prominent startups in India today, leveraging AI for  e-commerce fraud analytics. On the Razorpay platform, the team captures billions of events each day and uses the data to feed into AI models. This is then used to prevent fraud in digital and e-commerce transactions.