Zigi is a fully digital financial services app based in Guatemala. The platform caters to the population’s essential financial needs, enabling users to manage their money in a simple, transparent, secure and accessible way.
This case study is available in Spanish.
Key Takeaways
- Eliminated fake accounts created for the purpose of abusing promotions
- Prevented account takeover attacks, protecting users’ accounts
- Ensured a secure and trustworthy ecosystem
Enabling users to manage their finance in a simple and secure way
The Zigi platform helps Guatemalans manage their finances by allowing them to receive remittance, send money, pay offline with a QR code and more. Zigi's mission is to help people grow their wealth as well as accelerate financial inclusion throughout Central America.
Security is their top priority. Despite the prevalence of fraud in fintech solutions that can undermine user trust, Zigi is proactively addressing the risks posed by cybercriminals. They have opted for SHIELD's device-first risk intelligence solution to detect and stop fraud at the root, protecting their customers and the overall ecosystem.
Account takeover attacks are on the rise
Account Takeover (ATO) attacks are on the rise and the financial industry is a primary target for cybercriminals. The term refers to fraudsters illicitly accessing and taking control of users' bank accounts to perform unauthorized transactions, transfer funds, or engage in other malicious activities.
Fraudsters typically use social engineering tactics to carry out ATO attacks, wherein fraudsters manipulate users to expose login data or download malware. Phishing or spear-phishing is an example of this type of threat. In such attacks, criminals send messages or emails that appear to be from legitimate sources, such as banks or trusted organizations. These messages often contain links to fake websites/apps created to collect confidential information or to trick the user into installing malware.
Fraudsters also exploit accessibility permissions to perform ATO. Cybercriminals can manipulate users into downloading malicious apps and subsequently granting accessibility permissions to those apps. For example, fraudsters could then activate screen sharing and autoclickers without the victim’s knowledge. These make it easier for fraudsters to manipulate customers, take over their accounts and extract their money.
Mitigating Promo Abuse Fraud in the fintech industry
Zigi offers users discounts when they pay using the app and also provides a referral program that encourages existing customers to recommend the platform to friends and family.
These promotions usually attract fraudsters that employ malicious apps and tools, including app cloners and emulators, to create thousands of fake accounts. These accounts are then used to exploit platform incentives and promotions.
As a result, the platform’s marketing budget can be wasted on fraudsters instead of rewarding genuine consumers and attracting new users.
How SHIELD fortifies Zigi’s Defense Against Fraud
The Zigi team knew that protecting the banking app from promo abuse and its customers' accounts from account takeover attacks were crucial to earning their trust. That’s why they chose to use SHIELD’s technology as the platform’s first line of defense against fraud.
SHIELD’s device-first risk intelligence solution is powered by cutting-edge device fingerprinting and the latest in AI & machine learning algorithms. It identifies fraud at its root and analyzes thousands of devices, network, and behavioral data points to provide actionable insights in real time.
SHIELD Device ID, the global standard for device identification, enabled them to pinpoint the fraudulent devices used to create fake accounts, preventing promo abuse and account takeover.
The team further harnessed the SHIELD Risk Intelligence, identifying malware and malicious tools associated with fraud, such as app cloners, autoclickers and emulators.
SHIELD Risk Intelligence also ensures that the platform stays ahead of fraudsters with the Global Intelligence Network: a continuously updated library containing all fraud patterns encountered, as well as the latest malicious techniques. With over 7 billion devices and more than 1 billion user accounts analyzed worldwide, SHIELD leverages this intelligence to synchronize real-time attack patterns.
The solution empowers Zigi team with actionable real time device intelligence and a proactive approach to fraud prevention, ensuring a secure and trustworthy ecosystem.
Brenda Menjívar, Chief Data Officer at Zigi said: “SHIELD's technology empowers us to stay ahead of fraudulent activities, ensuring the highest standards of security for our ecosystem and customers”.
