compliance_monitoring · workflow
Monzo builds a real-time ML fraud detection model to identify and block APP fraud payments
Authorised push payment fraud is the fastest growing type of fraud in the UK, with over 35,000 people losing £145 million in the first half of 2018 alone. Bank transfers are instant and nearly impossible to cancel, making recovery very difficult once a victim has been tricked into sending money.
How it works
Common implementation structure
How this type of workflow is generally built, generalized across documented cases — not tied to any one vendor's stack. Click any stage to read what happens there. Specific products that implement these stages appear in “Tools commonly seen” below.
Stage 1 · Payment event triggers review
Whenever a Monzo customer receives or spends money, the systems must decide whether to approve or decline the payment.
Outcome
Monzo's fraud detection controls help more victims recover their money than they negatively impact legitimate customers, though the outcome is described qualitatively.
Results
Cost replaced35,000
Grounding & classification
Source type: technical build writeup
16 fields verified against source quotes.
anomaly detectionfraud detectionpredictive analyticsbank statementmetric backednamed customerproduction runtime claimedworkflow describedbankingerror reductiontechnical build writeupcompliance monitoringkyc amlmonitor detect alert