UnionPay handles over $17 trillion worth of transactions annually. It is the world’s largest card processing company and it operates in 174 countries.
UnionPay wanted to prevent fraudulent transactions at the time that a card was presented for payment. Traditionally, card fraud is often detected only after the payment has been made.
- While the card company can remedy the situation for the legitimate card holder, the bank must work to recoup the loss.
- As ever-more card transactions take place daily, the ability to analyze those transactions is putting the company under increasing pressure.
- UnionPay manages millions of payments each second and needed a real-time processing solution that could identify fraudulent activity instantly.
The Desired Outcome
UnionPay wanted to significantly improve their anti-fraud capabilities by preventing fraudulent activity immediately with a real-time detection and prevention solution.
- UnionPay needed a very sophisticated, high-speed processing data streaming capability, with specific rules applied to stop fraudulent activity.
- UnionPay wanted a solution that could analyze millions of concurrent transactions in real time to detect suspicious activity and intervene to prevent fraud before the crime had been committed.
- The solution can incorporate machine learning models to dynamically adapt to changing behavior, evolve to changing patterns and produce higher accuracy with fewer false positives.
The Solution & Key Benefits
Horizon8 leveraged its real-time data streaming analytics platform, known for its high-capacity, high-speed, and low latency capabilities, to deliver the solution.
The solution uses a rules engine to analyze data in real-time, allowing anomalies and outliers to be detected instantaneously. These business rules are designed and applied in line with client requirements.
- We set up fraud detection models in the rules engine, which observed spending behaviors and patterns of cardholders.
- We identified scenarios and use cases and created over 200 dynamic models to detect fraudulent activity.
- The solution was easy to integrate within UnionPay’s infrastructure and operating environment.
- In the first year of using the solution, UnionPay was able to prevent $30 million globally in fraudulent transactions.