Credit Card Fraud Detection System Boosts Security for Croatian FinTech Company Nexi Croatia

Nexi Croatia, a leading PayTech company in Europe, has successfully incorporated a novel fraud detection system to enhance its credit card payment solutions. The system combines machine learning techniques with large amounts of historical data to significantly improve the accuracy and efficiency of fraud detection.

A New Era in Fraud Detection

The new module was developed in collaboration with CROZ, a renowned IT consulting firm, which helped Nexi Croatia design an additional layer of protection for its customers. The company’s previous rule-based fraud management system had limitations, including inflexibility and difficulty in maintaining.

Machine Learning to the Rescue

By incorporating machine learning techniques, Nexi Croatia has been able to improve the performance of its fraud model significantly. As stated by Maja Žuvić, Data Scientist at Nexi Croatia, and Nataša Benčić, Senior Product Expert:

“The new LightGBM model is more effective in detecting fraudulent activities while reducing false positives.”

Challenges Addressed

Nexi Croatia’s previous system relied on traditional rule-based approaches, which are prone to becoming outdated and unable to adapt to changing patterns of fraud. The company had previously developed a rule-based fraud management system that detects potentially suspicious card transactions, but it lacked the flexibility and adaptability required to effectively detect modern fraud schemes.

The new system addresses several challenges faced by Nexi Croatia’s previous setup, including:

• Large amounts of data
• Unsuitable environment
• Gradual drop in model performance
• Lack of near real-time machine learning solution

CROZ’s Expertise

The CROZ team tackled these issues by improving big data processing, creating a new fraud classifier, conducting feature analysis, and designing a near real-time architecture. The results are impressive:

• Dataset quality has increased, with more transactions and features available
• Historic scope of the dataset has expanded from several days to several months
• Feature creation speed has improved significantly
• Model’s capacity has been enhanced

Benefits for Customers

As one of Europe’s leading PayTech companies, Nexi Croatia processes millions of transactions every year, making it a prime target for fraudsters. By incorporating this advanced fraud detection system, the company is further strengthening its commitment to providing fast and secure payment solutions to customers in over 25 countries.

Conclusion

The successful implementation of this project demonstrates CROZ’s expertise in helping companies like Nexi Croatia stay ahead of the curve in terms of technology and security. As the volume and complexity of fraudulent transactions continue to grow, innovative solutions like this one will play a crucial role in protecting financial institutions and their customers from financial loss.