SEON, the fraud fighters, has announced its partnership with GBG (AIM:GBG) APAC, the global expert in digital identity, helping businesses prevent fraud and meet complex compliance requirements to strengthen online fraud prevention for banks, fintechs and digital banks across Asia Pacific. SEON’s technology is fully integrated into the GBG Intelligence Centre and the alliance will combine to use publicly-available information from email, IP, phone and social media as alternative data for fraud detection, while meeting compliance and data privacy needs.
The covid-19 pandemic has accelerated digitisation, causing digital banks in Asia Pacific to report a threefold increase in their customer bases in 2020 as compared to traditional banks. Mature economies like Singapore and Hong Kong have established high fintech adoption rates, and developing countries like Vietnam, Cambodia and the Philippines are gearing to achieve financial inclusion with 70% of Filipino adults by 2023 to provide financial access to low-income households, gig economy, small businesses, and new-to-bank Gen Z. Digital banks are also growing rapidly worldwide: in Europe, researchers predict a compound annual growth rate of 5% until 2026. Challenger banks like Monzo, Revolut and N26 have become as mainstream as traditional banks throughout the continent.
As Financial Crime 4.0 continues to grow, SEON will enable GBG to increase effectiveness in combatting modern day fraud by matching information given during account application and loan origination with publicly available information. For example, it could identify from an email address whether a new customer is active on social media, a sign that they are a real person as opposed to an artificial persona created by a criminal for the purposes of fraud. Combining more than 35 social signals with digital data points, SEON’s technology can create a much clearer picture of a company’s clients, allowing them not just to reject fraudsters but accept real customers who might have previously been excluded. SEON’s results across a wide range of industries across the world have been consistently strong and, in some cases, have reduced fraudulent activity by 95% and chargebacks by 91%.
FIs and merchants utilising the GBG Intelligence Centre, will benefit from enriched data intelligence to augment fraud detection and prevention accuracy by reducing manual work for FIs, false positive and false negative rates. SEON adds to the performance of the Intelligence Centre with its track record of zero false positives for email, phone and IP. As fraud costs increasingly outweigh fraud management spend, this partnership helps risk management teams to increase efficiency by reducing time spent on manual tasks as well as the ability to automate fraud detection and prevention with a high degree of accuracy while remote working is in progress.
Jimmy Fong, Chief Commercial Officer at SEON, commented: “The ability to identify fraudulent behavioural patterns also means businesses can discover hidden revenue opportunities. SEON’s AI adapts to any business model, learning how it operates to create fully transparent and visible rules. This creates a scalable fraud prevention solution for all online business types, whether as a payment service provider, payment gateway, neobank, Buy Now Pay Later (BNPL), gaming, anti-money laundering and more. The combination of GBG and SEON is a modernised solution for a fast-moving digital age, set to create greater agility to mitigate growing risks of fraud brought on by the pandemic, while smoothening and automating financial crime management processes without compromising user experience.”
Dev Dhiman, Managing Director of GBG, APAC, said: “To effectively address the rise in digital financial crime simply means that fraud detection and prevention measures need to be constantly modernised. This partnership with SEON continues to expand GBG’s datasets to better combat against identity crime, in particular synthetic ID, impersonation, identity theft, account takeover, money muling, and SIM swap fraud typologies.”
He added: “Close to half of GBG’s customers are in financial services, it’s a top priority for us to build a watertight environment to avert any data point from being used by bad actors to commit fraud. By constantly enhancing how our platform performs, we can better protect our customers and build digital trust between financial institutions and their consumers. As the digital economy continues to evolve, the GBG Intelligence Centre will continue to grow its strong network of partners to equip all FIs with the best-of-breed data and technology to fight fraud.”
Complementing GBG’s artificial intelligence (AI)-driven approach to detect fraud, SEON uses open data and whitebox machine learning, giving businesses complete visibility and total control of how the AI decisions are made. Its customers in the APAC region include Grab, Danabijak, ATM Online, HomeCredit, 10Bet, and Robocash.
This partnership forms part of GBG’s commitment to protect and provide FIs with end-to-end digital fraud and compliance solutions. The GBG Intelligence Centre, with SEON incorporated, will be available to FIs across APAC, including Vietnam, Cambodia, the Philippines, Malaysia, and Thailand.