Global Forex Trading Platform Slashes Chargeback Rates by 45% With No Extra Friction

About

A multinational brand with 20+ years of financial market and online-trading experience, Libertex Group has helped clients trade stocks, currencies, indices, commodities, gold, oil, and gas since 1997. This multi-award winning company now list 210 tradable assets for 2.2M clients across 40 countries.

Challenges

We were already using a fraud detection tool for device intelligence, but we worked with a small number of data points, which meant loads of manual reviews and constant pressure on the fraud team.

The trading company faces two major challenges in its day-to-day operations. Firstly, they act as a digital wallet, allowing users to deposit money using a credit card which makes them a number one target for fraudsters.

Secondly, they cover risky markets known for high chargeback rates. In Latin America, for instance, chargeback rates were so high that the company feared Visa and MasterCard might issue warnings.

We were already using a fraud detection tool for device fingerprinting. But we work with a small number of data points, which meant loads of manual reviews and constant pressure on the fraud team. Some of our customers had to wait for reviews to use our platform, which isn’t something we want to put them through.

Luca Giancola, Head of Risk, Anti-Fraud and Payments at Libertex Group.

When the executives agreed a solution was needed, another challenge arose: they needed a fast, seamless integration, and a product that could work with their existing tool. “Flexibility was a must-have feature for us,” continues Luca. “We pride ourselves on our uptime for customers, as any disruption during the integration would have hurt their trading efforts.”

Solution

The fraud managers began comparing several solutions. SEON immediately stood out:

The fraud managers were particularly impressed by the machine learning engine, which trained itself with historical chargeback data to update and improve rules.

And SEON’s upcoming extensive phone number analysis will also help confirm user IDs at signup, a feature not all fraud prevention tools offer.

“We also employ several data analysts here at Libertex Group,” Luca says. “So features like team access, flexible permission rights and work logs were must-haves to control performance from individual employees.”

Results

The numbers in fraud reduction speak for themselves. But the ability to see customer connections is the feature our fraud team uses the most to combat multi-accounting, ATO and overall fraud attempts.

”The integration with SEON was a smooth as we could have hoped,” continues Luca. “Our developers had a dedicated chat channel so they could get in touch with SEON whenever a tweak was needed.”

The result? A fraud prevention tool that updates and improves their current device fingerprinting, with zero extra customer friction:

• Chargeback rates dropped by 45%
• Number of manual reviews decreased by 20%
• Time to configure and edit rules is slashed thanks to the machine learning suggestions and confusion matrices.

We couldn’t be happier with SEON. The numbers in fraud reduction speak for themselves. But the ability to see customer connections is the feature our fraud team uses the most to combat multi-accounting, ATO and overall fraud attempts.

Luca Giancola