Monzo decreased pre-paid card fraud to 0.1% and false positive rate to 25% using machine learning
Summary:
Monzo's machine learning system predicts which online banking and card transactions are potentially fraudulent. Upon detection, extra security is required to verify user identity. This has led to a decrease in pre-paid card fraud to 0.1% and false positive rate to 25%.
Problem:
Monzo is an online banking app and prepaid card provider. "A criminal can purchase stolen card details online, top up a Monzo card, and then spend that money that originally came from a stolen card in a shop or withdraw cash from an ATM. We will then later receive a chargeback from the real cardholder and are therefore out of pocket for that amount. Prepaid card schemes are especially attractive to criminals for this reason — it allows them to convert stolen card details into a physical card very easily."
- Industry
- Banking
- Function
- Audit
- Company Name
- Monzo
- Vendors
- Confidential
- AI Technologies
- Link to usecase
- link