Cashfree Payments, India’s leading payments and API banking company, announced the launch of ‘RiskShield’, India’s first real-time risk management solution for payment gateways. The goal is to reduce fraudulent activity by up to 40%. This internally developed solution will also help Indian businesses reduce chargebacks and disputes, thereby equipping them with tools strategically designed to precisely combat fraudulent transactions and ensure financial stability.
Akash Sinha, CEO and co-founder of Cashfree Payments, said: “As one of the largest payment service providers, it is our responsibility to make the ecosystem safer for Indian businesses.” We developed ‘RiskShield’ to empower merchants to protect against fraudulent transactions. This product is the result of years of research and analysis of high-risk transactions by Cashfree Payments in a range of tools that merchants can now use as a complete risk management solution to help curb cybercrime. We believe RiskShield will redefine the security landscape of online transactions in India and provide merchants with unparalleled protection and security.”
The Reserve Bank of India (RBI) has reportedly documented bank fraud to the tune of Rs 30,000 crore in FY2023. This increase in fraudulent activity resulting from digital transactions poses a significant threat to security and creates critical issues for businesses such as direct revenue loss, bank account debit freezes, working capital blockages, operational complexities, legal costs and the impending threat of account termination due to high chargebacks. Cashfree Payments’ RiskShield provides a secure business environment by reducing fraud, minimizing litigation risks, improving the transaction experience and fostering positive customer relationships. Additionally, merchants using Cashfree Payments’ FlowWise orchestration platform can seamlessly integrate RiskShield to block fraud transactions across multiple payment aggregators.
RiskShield leverages advanced artificial intelligence and machine learning algorithms across its merchant network to detect fraudulent transaction patterns and protect merchants from huge potential losses and litigation. Additionally, this solution provides the trader with a variety of controls that allow them to define very specific rules that only apply to their business scenario. What is remarkable is that this integration can be seamlessly integrated into the existing system without any technical effort.
Ramkumar Venkatesan, CTO, Cashfree Payments, said, “This launch demonstrates the company’s commitment to prioritizing safety and security through technology-led innovations. Either companies completely neglect investing in risk and fraud detection tools, or even if they have the tools, they lack real-time payment blocking capabilities and suggested rules for implementation. To develop risk solutions, companies also need special certifications like PCI-DSS certificate, etc. RiskShield offers such companies a comprehensive solution based on AI and ML algorithms and a rules engine to fill these operational gaps. RiskShield will be invaluable to businesses facing high chargebacks/fraud, including financial services, e-commerce, travel and more.”