Challenge
Fraud is evolving rapidly, with increasingly sophisticated schemes targeting financial institutions worldwide. In 2023 alone, global losses from fraud scams and bank fraud schemes were projected to reach $485.6 billion (Nasdaq Verafin). Additionally, 70% of businesses and over half of consumers reported a rise in fraud rates (Experian).
Faced with:
- Rising fraud threats driven by AI and spoofing techniques,
- Regulatory pressure to improve fraud detection,
- A legacy system that lacked automation and flexibility,
a leading banking institution in Poland, part of a major international capital group, sought to modernize its fraud detection capabilities to protect its clients, assets, and reputation.
Fraud is evolving rapidly, with increasingly sophisticated schemes targeting financial institutions worldwide. In 2023 alone, global losses from fraud scams and bank fraud schemes were projected to reach $485.6 billion (Nasdaq Verafin). Additionally, 70% of businesses and over half of consumers reported a rise in fraud rates (Experian).
Faced with:
- Rising fraud threats driven by AI and spoofing techniques,
- Regulatory pressure to improve fraud detection,
- A legacy system that lacked automation and flexibility,
a leading banking institution in Poland, part of a major international capital group, sought to modernize its fraud detection capabilities to protect its clients, assets, and reputation.
Solution
To address these challenges, we partnered with the bank to develop and integrate a modern fraud prevention system that automates detection and response.
1. Automated fraud detection integration
We built a new batch collection and processing module within the bank’s Spring-based system to:
- Automatically exclude suspected fraudulent transactions from processing.
- Enable real-time verification and validation of transaction data.
2. Key system components
- Accounting application: Facilitates secure transfer of approved transactions.
- Spring application module: Validates and stores transaction data, blocks suspicious transfers.
- Scheduled dispatcher (Spring Batch): Sends approved transactions at set intervals, ensuring timely and secure processing.
3. Secure two-way communication
The system maintains a secure feedback loop with receiving banks, verifying transaction statuses and ensuring data integrity at every step.
4. Cross-department collaboration
The project involved stakeholders from compliance, claims, and security, alongside developers, analysts, testers, and a product owner—ensuring a holistic approach to fraud prevention.
To address these challenges, we partnered with the bank to develop and integrate a modern fraud prevention system that automates detection and response.
1. Automated fraud detection integration
We built a new batch collection and processing module within the bank’s Spring-based system to:
- Automatically exclude suspected fraudulent transactions from processing.
- Enable real-time verification and validation of transaction data.
2. Key system components
- Accounting application: Facilitates secure transfer of approved transactions.
- Spring application module: Validates and stores transaction data, blocks suspicious transfers.
- Scheduled dispatcher (Spring Batch): Sends approved transactions at set intervals, ensuring timely and secure processing.
3. Secure two-way communication
The system maintains a secure feedback loop with receiving banks, verifying transaction statuses and ensuring data integrity at every step.
4. Cross-department collaboration
The project involved stakeholders from compliance, claims, and security, alongside developers, analysts, testers, and a product owner—ensuring a holistic approach to fraud prevention.
Results
Reduced manual workload
Automated detection significantly decreased the need for manual transaction reviews.
Faster fraud resolution
Suspicious transactions are blocked before leaving the account, reducing investigation time and improving recovery rates.
Enhanced security
The bank has seen a measurable reduction in fraud risk, strengthening customer trust and institutional resilience.
Lower technical debt
Replacing legacy components with modern architecture improved system maintainability and scalability.
Future-ready infrastructure
The bank is now equipped with a robust, secure, and scalable fraud detection system, ready to adapt to evolving threats.
Looking Ahead
This successful collaboration highlights the power of technology-driven innovation in combating financial fraud. By modernizing legacy systems and fostering cross-functional teamwork, the bank is now better prepared to protect its customers and navigate the challenges of the digital age.
Reduced manual workload
Automated detection significantly decreased the need for manual transaction reviews.
Faster fraud resolution
Suspicious transactions are blocked before leaving the account, reducing investigation time and improving recovery rates.
Enhanced security
The bank has seen a measurable reduction in fraud risk, strengthening customer trust and institutional resilience.
Lower technical debt
Replacing legacy components with modern architecture improved system maintainability and scalability.
Future-ready infrastructure
The bank is now equipped with a robust, secure, and scalable fraud detection system, ready to adapt to evolving threats.
Looking Ahead
This successful collaboration highlights the power of technology-driven innovation in combating financial fraud. By modernizing legacy systems and fostering cross-functional teamwork, the bank is now better prepared to protect its customers and navigate the challenges of the digital age.