Early detection of fraud in fintech ecosystem!

Paypal reports 4.5 million fraud accounts.

4.5 million is a massive number. It highlights some of the major limitations with fintech and financial ecosystem. With smarter fraudsters, this is a cat and mouse race between the fraudster and the financial ecosystem to out smart each other. As the fintech space mature, early detection of frauds will be a massive moat.

https://www.forbes.com/sites/jeffkauflin/2022/02/02/paypal-admits-45-million-accounts-were-illegitimate-as-fintechs-fraud-problem-grows/?sh=7366ebb736b9

Product and tech leaders will have to make fraud detection a higher priority. With a better early fraud detection, fintech will reduce deliquency and improve the overall health of the book.

This will also have a major impact on the credit underwriting process as well.

It makes huge business sense for fintech ecosystem to park resources dedicated to early fraud detection and close the door on as many fraudster as possible.