Building state of art Fraud and compliance infra for FinTech

Credit Karma introduced savings and checking accounts through its internet (neo) banking product, which quickly faced fraudulent activity, with members targeted by fraudulent transactions using stolen debit card information. To address this challenge, there was an urgent need to develop a system that could identify suspicious and risky transactions and notify users across multiple channels, including push notifications in the app, SMS, and email. The notifications provided users with a link to confirm whether the transaction was recognized.

If the transaction was confirmed as valid, it would proceed; if the user did not recognize it, the system would disable and deactivate the card, preventing further use and offering an easy dispute mechanism. Leading this initiative, a cross-functional team was formed to build the system, using fraud detection rules to identify suspicious transactions and automating the response process. This solution significantly reduced fraud and protected users' financial accounts.

The success of the project was recognized, and the team’s efforts were honored with an Exceptional Impact stock bonus. Additionally, a new workflow and robotic process execution system was created to automate tasks for the Fraud Strategist and banking process compliance teams. This system helped manage inactive account closures and ensured debit cards were locked during open disputes, reducing manual errors and improving process efficiency. As a result, the fraud loss rate dropped from 15% of revenue to under 1%, close to industry standards, and more than 300,000 inactive accounts were closed.