Using Device Intelligence to Address Digital EMI & Checkout Finance-specific Threats and Opportunities

Digital EMI and check-out finance have seen an explosive increase in popularity among consumers as payment methods. However, studies indicate that fraudsters are increasingly using sophisticated tactics when the value at risk increases, especially in cases where consumers are able to split the payment for large purchases into smaller and more manageable instalments. These include social engineering tactics to get consumers’ credentials, facilitate account takeovers, or bypass typical security measures such as 2FA. The traditional KYC processes that banks and other financial players employ are inadequate for detecting and dealing with these evolving fraud attacks. 

In this context, ZestMoney proactively decided to supplement its risk intelligence through SHIELD’s Device Intelligence solution, which was expected to provide rich device-based insights to unlock better credit decisions while ensuring that fraud continues to be minimized.

Stopping Fraudsters to Protect Customers

For the underbanked and unbanked, customer trust and safety is of utmost importance given that fraudsters often target these segments. For example, bad actors may use identity cards purchased from rural areas to sign up for fake accounts. Individuals who have had their identities stolen for the creation of fake accounts would find it challenging to get credit in the future. Another common fraud tactic is to spoof physical devices, making it appear like hundreds or even thousands of unique digital devices to create fake accounts. 

As customer safety and security are at the core of ZestMoney’s operations and priorities, ZestMoney decided to proactively add the supplementary security layer that uses a unique device identification approach that allows linking fake devices to same physical device. In addition, the Trust Indicators provided by SHIELD will further supplement ZestMoney efforts to enable a more comprehensive risk profiling and also improve the credit approval decision-making process, besides being able to stay ahead of the threats. The other intangible benefits would include serving the credit needs of new customer segments including those without prior or adequate credit history while minimizing loan defaults. 

SHIELD’s solution complemented ZestMoney’s ongoing efforts as it uses thousands of data points and their combinations – an approach that ZestMoney has always taken for its internal decisions based on Artificial Intelligence to assess fraud/risk patterns. 

“The security of our users is of paramount importance to us. While we have a solid in-house infrastructure and tech stack, SHIELD’s Device Intelligence complements our efforts to further drive and scale credit inclusion in a safe and secure manner.” said Natalia Lyarskaya, Chief Data Officer of ZestMoney.