Retail Bank Reduces Fraud False Positives by 40% with AI

The Challenge

A leading retail bank needed to reduce false positives in its fraud detection system, which were leading to high operational costs and poor customer experience.

The Solution

Neotheta developed and deployed a real-time transaction scoring engine using a Gradient Boosting Machine (GBM) model. The model was trained on a massive dataset of historical transactions and was able to identify subtle patterns indicative of fraud with high precision.

The Results

  • 40% reduction in false positive fraud alerts
  • 95% precision in detecting fraudulent transactions
  • Improved customer satisfaction by minimizing legitimate transaction declines

Technologies Used

AWS SageMaker, Python, XGBoost, Kinesis, Lambda

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