Blog » MRS API

October 3, 2024

Transaction Enrichment for Enhanced Fraud Detection in Banks

• Digital Banking
• Product
• Transaction Enrichment

4 minutes

In today’s digital landscape, financial institutions face a relentless surge in fraudulent activities. To protect their customers and maintain operational integrity, these institutions must adopt advanced bank fraud detection techniques. A key strategy is transaction data enrichment, a process that augments raw transaction data with contextual information, greatly enhancing its analytical value and improving the overall banking experience.

The Role of Geospatial Data in Fraud Detection

Geospatial data, derived from tools like Google Maps, plays a crucial role in transaction data enrichment. By integrating location information with transaction details, financial institutions can enhance customer banking experience while detecting suspicious patterns and fraudulent transactions, ultimately improving the digital banking user experience.

By way of one example, banks can use the ATM and Branch Office Finder to detect unusual activities, such as large ATM withdrawals. Additionally, device-based location services can verify if a customer’s location aligns with the transaction location. This geospatial analysis can significantly assist in reducing fraudulent transactions by flagging suspicious activities in real-time.

Leveraging Google Maps for Enhanced Fraud Detection

As a Google Maps Premier Partner, Snowdrop Solutions can provide financial institutions with a wide range of geospatial APIs and services. These APIs can be used to:  

• Verify customer identities: By comparing customer-provided locations with transaction locations, banks can reduce the risk of fraudulent account setups.
• Identify suspicious merchant activity: By analysing merchant locations and transaction patterns, financial institutions can detect potential payment fraud schemes.  
• Provide real-time notifications: Customers can receive notifications about their transactions, including merchant information and location details.

The Power of Enriched Transaction Data

Enriched transaction data empowers banks to identify suspicious patterns, such as purchases made in different geographical locations within a short time frame. This capability enables them to act swiftly, blocking unauthorised transactions before they can escalate into significant losses.

Our flagship product, the MRS API, leverages the power of AI and machine learning to deliver exceptional accuracy and precision in banking transactions. By providing access to a comprehensive array of additional data points – including detailed merchant information, historical transaction records, and precise location data – the MRS API significantly enhances banks’ ability to detect fraudulent activity.

For example, by analysing historical transaction data, banks can establish baseline spending behaviours for their customers. This allows them to pinpoint deviations that may signal fraudulent activity, ensuring timely intervention and increased security for their clientele. Coupled with fraud analytics and fraud detection in banking using machine learning, institutions can identify fraud more accurately and proactively.

Summary

Transaction data enrichment is a vital solution for real-time payment fraud detection in the banking sector. By integrating transaction data with geospatial information, financial institutions can enhance their ability to identify fraudulent activities. As the digital landscape evolves, robust fraud detection systems for banks become increasingly important. Utilising transaction data enrichment and advanced technologies enables banks to stay ahead of emerging threats and maintain the security of their operations.