DFraud Case Study

Organizations have regulatory and self-imposed obligations to be met to run their business efficiently. Failing to comply results in penalties from regulatory bodies, breakdowns and bottlenecks in operations, and above all, loss of brand value, which can be very corrosive in the long run. Changes in regulatory scenarios and ever-evolving fraud methodologies call for immediate action. The regulatory reviews are periodic, and repeat offenders attract severe penalties, including suspension of business licenses in some instances. To paraphrase Charles Darwin’s evolution research, It is not the strongest or the most intelligent who will survive but those who can best manage change.

Rising problems of fraudulency: New methodologies to fraud a system.

Organizations onboarding customers to deliver their services must uphold strict regulatory and security standards. Businesses face fraudulence from users by various means and methods. Solutions to safeguard businesses from such practices need to identify and consolidate data to filter out such fraud cases. Organizations face significant hurdles in consolidating all onboarding data. Solutions may have limitations in terms of scalability, reliability, and robustness. Above all, the ever-evolving methodologies of fraud by users add to the problem statement and need a multipronged approach to decimate redundancies. Fraud attempts to fool the system involve various forms of document modification to beat the system. 

Jukshio’s Dfraud:

Businesses have implemented KYC solutions but need ID compliance solutions. Our advanced Face Recognition technology helps businesses cull out fraudulent onboarding. This instance of the number of onboardings of the same individual from their database. We can create reports on a daily-weekly, or monthly basis.

Our Dfraud solution leverages the following multipronged approach,

  • Deduplication
  • Document Modification
  • Blacklisting
  • Manual Re-verification

Deduplication: Through deduplication, we use facial recognition technology to consolidate documents with different data but the same face. For instance, our solution found that a user created 139 variations of the same document.

Document modification handling: Our AI-based auto modules can detect document spoofing with high levels of accuracy. We can detect the following methodologies of tampering,

  • Customer photo captured from a display screen for verification.
  • Pasting face photos on ID and making multiple photocopies to avoid detection.
  • Paste paper on the information printed on the ID, especially QR codes, to spoof the system.
  • Capturing images from a HighRes TV to beat liveness.

Blacklisting: Realtime mechanism of Blacklisting users who practice fraudulence. Blacklisting users is based on the consolidation of data. User data fished out for fraud, or document spoofing helps form the blocklist, allowing all future fraud attempts.

Manual re-verification: It is a post-factor process involving multi-layer manual checks. The scalability of this added layer of checks can be summarized by the humans deployed in this team. They are exceptionally well-trained in detecting fraudulency. The group is specialized in picking up fraud, with their senses trained to pick the slightest document tampering. Precautions go into the selection of the team as well. A diverse group is chosen from various geographies and sociological and cultural backgrounds to avoid bias. The team is capable of detecting fraud from an extensive database and is capable of making 68000-80000 decisions daily.

The team’s real-time tasks and reports can be shared daily and hourly.

Thus with our AI-based auto modules and manual re-verification, we can pick out various cases of fraudulence from your onboarded data and consolidate the whole database for your ease of access. Our multilayer checks will not only reclassify your data but also prepare a Blacklistlist of offenders to incorporate into your onboarding solution and keep them at bay. 

Case study

This report analyzes the issues faced by our client a multi-national company and the technological innovations provided by Jukshio for KYC.

The Client and the bottlenecks

The client faced issues with accuracy, cost-effectiveness, and the time taken to process KYC. The existing solution’s inability to handle sophisticated fraudulent attempts and the error rate during the processing of KYC concerned the client. They approached us for solutions as we were already engaged with them on their attendance management system with the deployment of FR+FL Solution named mHere.

In order to combat fraud, we had to consider both regulatory and domain-specific requirements. One crucial aspect was organizing a user database consisting of 400-500 million records. Additionally, the client had the capability to onboard 1.5 million users daily. To identify fraudulent documents, a staggering 4 quadrillion (4,000,000,000,000,000) decisions needed to be made each day.

Fraudulence in the client’s case involved agent and user-based attempts to fool the system. For instance, one user could use different ID documents across states to obtain sims beyond the limit of 9. And due to demand, agent-involved fraudulence was also high. Agents tried to beat the system by using their photographs while not being physically present at KYC.

Jukshio’s Solution

Our AI learned from millions of samples. With AI, we built a document verification technology that can detect any kind of discrepancies in the document, like improper document templates, blurred documents, partial documents, and photocopies. Our Face Recognition technology helped fish out fraud by the same user. Our Face Liveness technology identified several frauds by Agents and helped create a Blacklistlist of Agents. Our unique Human-Machine combo allowed the process accuracy to 99.998%—this differentiated Jukshio from other competitors in the market.

The team leveraged AI to make Facial Recognition and Liveness technologies highly accurate. They formulated a Document verification technology capable of extracting data and detecting any irregularities in the documents, such as spoofed or tampered documents.

Constant human-aided machine learning helped the AI tackle the different fraudulent practices used to trick the system. In user-involved fraudulence, we used our facial recognition technology to scan multiple formats of docs and created a non-name-based grouping of people. The facial recognition technology helped us to detect 567079 violations.

In Agent-involved fraudulence, we used facial liveness technology to identify agents responsible and blacklisted 5000 out of a total of 1 lakh. Our mechanism could sustain the pace and rate of blocking fraudulent agents. In a given month, 20,0000 instances of agent-involved fraud are detected.

Business benefits:

  • Cost saving - Saved 91% in the client’s overall expenses.
  • Reduced Frauds
  • Faster Processing - Paperless onboarding verification can now be completed in a maximum of 3 seconds.
  • Convenient Customization - We have several feature-based customizations to meet industry-specific compliance requirements 
  • Reduction in operational expenses.

Technical benefits:

  • Extremely low response time (latency)
  • Convenient Integration - flexible to deploy through existing hardware.
  • Negligible downtime and false-alarms
  • Real-time dashboards
  • Customizable web and mobile flow
  • Ability to deploy the solution in various ways - Public Cloud, On-premise (Own Server), Offline 

Key highlights and impact we made

The client saved 91% on overall expenses and boarded over 615 Million users. Our solutions add value in terms of

  • Cost-effective and convenient technology that uplifts the revenue segment.
  • Regulatory audits found Zero errors.
  • Superior methods of fraud detection using AI-based auto modules and Manual re-verification.
  • Our solutions enable customer-centric customization that meets industry requirements and trends.

Our KYC audit led to the client eliminating fraudulence in their business and adopting our onboarding KYC solution to streamline their business.

As the metaphor goes, “We aren’t reinventing the wheel” We make better ones that drive your business smoothly and fast. We guarantee to find faults that are caught by compliance. We pay the fine if we miss any fault, and compliance catches it. Zero questions asked!

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