Juan Manuel Ruiz Palmieri

What can the finance and service industry do to minimize and prevent fraud?

Cí­rculo de Crédito is a credit bureau that not only condenses, secures, and manages the financial information of more than 80 million Mexicans, but is also committed to providing technology and tools that help credit grantors have more agile, effective, and secure credit processes. The application of digital solutions like digital origination has been key for lenders to cope with new market needs that emerged as a natural response to social distancing and restrictive measures. However, the new market dynamics also bring up the issue of digital fraud. According to CONDUSEF, cyber-fraud claims in 2020 increased by 25% YoY. To help our clients thrive within this reality, Cí­rculo de Crédito has enabled in Mexico disruptive technology that is based on AI and machine learning. Our solution enables us to understand the habits of individuals with the aim to detect anomalies in their financial behavior patterns. With Cí­rculo de Crédito’s expertise managing the credit behavior of Mexicans, we not only help to record fraudulent acts, but we also now provide technology to prevent and thus help the financial ecosystem to reduce the risk of being victims of this form of criminal acts.

What can the finance industry do to minimize and prevent fraud?

There are two approaches to detect fraud; first, there is the traditional method based on a foundation of knowledge and rules, which has the disadvantage of being reactive and not preventive; in other words, it acts once the fraud occurs. However, Cí­rculo de Crédito opts for advanced adaptive methodologies that prevent and predict the possibility of fraud. With the development of new technologies and our proficiency in data processing, we have innovated in new adaptive ways to understand usage behaviors. By observing and analyzing behaviors, we can prevent fraud. Cí­rculo de Crédito can determine which credit card a person uses, their limits, and the type of products they have. Combining these with geo-analytics technology, we can detect if any anomaly emerges. Furthermore, with an average of over 11 million credit applications a month and a database of more than 80 million people Cí­rculo de Crédito is on an unbeatable position to provide these vanguard solutions to our clients.

Why did Cí­rculo de Crédito sign a partnership with Featurespace?

Cí­rculo de Crédito is on a relentless pursuit for innovation and cutting-edge solutions in order to deliver value to our customers that can be translated into competitive advantages. This purpose is what gave us the confidence to create the present alliance. Featurespace has demonstrated to be a thriving innovation company by being the ones who discovered the technology to detect anomalies together with its knowledge of adaptive behavioral analytics. Moreover, with the combination of its technology plus our strength in knowing the credit behavior and our database with millions of Mexicans registers, we have joined forces to develop a unique solution to detect and predict fraud. People have repetitive behaviors; from the coffee they drink to how they drive a car. Thanks to Featurespace and Cí­rculo de Crédito, lenders will be able to apply this adaptive method. The alliance occurred in 2020, and in 2021 we implemented fraud scanning technology whereby we detect unusual behavior. When we detect atypical behavior, we alert the financial institution to act before fraud occurs. By 2022, we will unveil this new adaptive solution: Guardian Fraud Prevention Hub. For Mexico, it is a new technology, although it has been used for more than 10 years in the US and Europe. Cí­rculo de Crédito invested in these new trends and technologies providing its availability for all our clients in Mexico. More than 3,000 customers who trust and consult us can now generate an application with a fraud score.