Building and maintaining in-house KYC (Know Your Customer) and fraud prevention tools come with their fair share of challenges and pains. It encompasses tasks such as reviewing and interpreting local compliance regulators, identifying and procuring identity data from multiple fragmented sources, integrating with approved vendors, and orchestrating business rules to reach a definitive outcome. These tasks are arduous to complete and consume valuable time for full-time employees and draw on finite economic resources. Worst, yet, the results are sub-optimal because the identity challenge is dynamic which makes these in-house tools quickly become outdated. One way to visualize these in-house tools is a web of train tracks coming into a station and how much manual work is required to remove potential hazards and keep the tracks running.

In this post, we will explore some of the greatest obstacles commonly associated with this process and delve into the complexities of dynamic fraud prevention in real time. From the continuous evolution of fraud techniques to the crucial need for real-time detection and response, we will uncover the key factors that shape an effective identity decisioning solution. We aim to provide insights and guidance to businesses facing the challenges of consolidating business rules and establishing a robust fraud prevention framework to safeguard their operations.

Here are some of the significant challenges commonly associated with the creation and maintenance of fraud prevention workflows:

Data Integration Challenge: Balancing Speed and Quality

Effective identity decisioning relies on access to diverse and accurate data sources, including transaction data, user behavior patterns, historical fraud cases, and external threat intelligence. Integrating and consolidating data from multiple sources while ensuring its quality, completeness, and timeliness can be a significant pain point. The process must be efficient without sacrificing data accuracy and reliability.

360 Understanding: Focusing on Identity, Not Just User Attributes

When implementing an identity decisioning tool involving multiple data vendors, the emphasis often shifts to validating individual user attributes such as phone numbers, email addresses, or social security numbers. However, the challenge lies in ensuring that all these attributes correspond to a single identity. Without a comprehensive view of users across different data sources, businesses risk onboarding synthetic identities and falling victim to fraud. Managing and cross-referencing these data points can become a demanding and time-consuming task for your in-house teams.

Dynamic Fraud Prevention: Navigating Real-Time Complexity

Building and maintaining a robust identity decisioning solution can be resource-intensive, involving substantial investments in technology, infrastructure, skilled personnel, and ongoing maintenance. Financial institutions, particularly smaller fintech companies with limited resources, face the challenge of balancing the costs associated with KYC and fraud prevention against potential risks and benefits. Striking the right balance is crucial to prevent regulatory exposure and financial loss while managing budgetary constraints.

Experience the Power of Zenpli’s Onboarding API

At Zenpli, our goal is that digital innovators in LatAm can ‘buy’ their identity department versus ‘building’ it. Key to this vision is our Onboarding API and its Decision Logic, a user identification framework that serves as the instructions delivered by our customers at the time our Onboarding API is pinged. These instructions direct the Onboarding API to construct a specific identity puzzle by correlating user attributes against multiple data sources (and each other), forming a comprehensive understanding of each user’s identity, and finally applying flexible and adaptive business rules to deliver a definitive decision. What’s best, is that putting together these instructions just takes our customers a few clicks and no code.

Without Zenpli’s Decision Logic

with Decision Logic, you can:

Streamline Data Integration:

Gain seamless access to a wide range of high-quality and comprehensive data sources through our Onboarding API. Our dynamic Feature Catalog, which evolves continuously, enables you to expand or contract the understanding of users based on your specific requirements without being limited by data availability.

Achieve a 360 Understanding:

Shift your focus from evaluating individual user attributes to gaining a holistic understanding of the person behind the data. Decision Logic allows you to construct an identity graph using correlational features, effectively preventing synthetic identities from engaging in fraudulent activities within your business.

Navigate Complexity in Real Time:

Stay ahead of bad actors by continuously adapting fraud prediction models and business rules. Our platform ensures synchronization with the latest fraud patterns, allowing you to proactively respond to evolving attack vectors while maintaining effective prevention measures.

Optimize Cost, Time, and Resources:

Simplify the process of fulfilling your KYC requirements while implementing a customized fraud prevention model tailored to your business needs. Streamline, standardize, and effortlessly access your business rules to make informed decisions with ease.