Afterpay taps Cloudera to reduce fraud risk


Afterpay has tapped Cloudera, a hybrid data firm, for its Cloudera Data Platform to run streaming analytics and advanced ML for real-time fraud detection.

CDP helps Afterpay identify, access and reduce business risk relating to fraud for its 3.6 million customers, delivering on the company’s mission to power an economy which offers consumers better financial access, inclusion and experiences.

Given the eight-fold increase of its daily transactions from 100 million to 800 million in under a year, Afterpay required a more stable production environment to accommodate large-scale data to ensure analytics can be performed accurately at speed without compromising operational efficiencies.

Existing in-house tools then were inadequate in managing these internal analytics requirements. The data platform also had to be flexible, scalable and built for growth to accommodate new and additional services and solutions to support Afterpay’s rapid expansion across the region and globally.

Harnessing the analytics capabilities of CDP Public Cloud, Afterpay’s engineers are now able to produce up to 800 million hybrid data streaming events and batch features for the data analysis team to perform fraud and predictive analytics for more data-driven and accurate insights.

Afterpay engineering manager Pinje Huang said, “Fraudsters today are becoming increasingly smarter in coming up with new patterns to take advantage of the system. We needed fast and flexible solutions to quickly adjust to newly identified fraud patterns or behaviours.

“The Cloudera Data Platform provided us with the right set of tools and visibility to proactively address these advanced fraud patterns by detecting issues and irregularities in real-time. As a result, operational efficiencies improved by 30% and internal net transaction loss (NTL) were kept under 10%.”

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