Loylty Rewardz
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Most businesses run loyalty programs unaware that their rewards framework is being misused. It could be a loophole in your redemption portal or gamifying the points accrual system. Leaving your rewards program vulnerable to such manipulation leads to significant challenges for your organization.

With high volumes of data being processed through rewards systems, traditional detection models are largely manual in process, making them time consuming, inconsistent, error-prone and limited in capabilities, leading to greater potential risks. Our Risk & Outlier Detection Model is designed to protect rewards management systems from misuse by intelligently detecting anomalies and taking preventive measures.

Predict emerging use cases
Block high risk redemptions
Adjust the rewards eligibility criteria
Implement data-driven decisions

What does the model do?

  • Continuously monitors customer transactions and profile behavior using AI.
  • Identifies potentially suspicious customers based on volume, velocity, and variety.
  • Automatically blocks suspicious customers redemption on your rewards platform.
  • Identifies control gaps in the program.
  • Recognizes novel use-cases in the rewards system.

How does the model work?

Transactional Data Analysis

Transactional Data Analysis

The model undergoes training through extensive analysis of transactional data.
Customer Behavior Study

Customer Behavior Study

Incorporates an in-depth analysis of normal customer behavior across various transactional aspects to establish baseline patterns.
Utilization of Unsupervised Techniques

Utilization of Unsupervised Techniques

Engages advanced unsupervised learning methodologies to identify anomalies or deviations from established customer behavior without explicit supervision or labeled data.
Statistical Model Implementation

Statistical Model Implementation

Integrates unsupervised techniques within a statistical model, enabling the model to autonomously detect irregularities and aberrant transactional behaviors efficiently.

What services are included?

Guardrails

Alerts on High-Value Redemptions

  • Alert is triggered whenever any redemption is more than INR 25,000.
  • Hourly checks are carried out on the above criteria.
  • The program manager checks with the bank for any suspicious high-value redemption transaction.

MCC Category Standard Exclusion List

  • MCC exclusions list to minimize excessive point posting.
  • Decrease unnecessary redemption expenses.

Accrual Anomaly Detection

  • Simulation of accrual constructs on historical data to identify possible excessive accruals.

Capping of Daily Redemptions

  • Daily capping of 10 transactions and cumulative maximum of 3 Lacs per day.
  • Offline redemption is exempted from this capping.

File Integrity Monitoring System

  • Checks for any changes in files like accrual data, critical system files, regex files.
  • Monitoring is implemented across the system to prevent internal file changes.

Intelligent Risk Outlier Model

Anomaly Detection Model

  • Advanced Machine Learning model for outliers, monitoring, and alerts.
  • Highly accurate fraud detection minimising false positives.
  • Customization for specific business needs.
  • Regular model updates to adapt to evolving fraud tactics.
  • Maintenance of all data pipelines and server-side architecture.
  • Maintenance of all infrastructure required for running the model.
  • Expert data science team support for insights and collaboration.
  • Top-notch security and confidentiality measures.
  • Scalable and cost-effective solution for proactive fraud prevention.

Investigation and Analysis Support

  • Detailed investigation of flagged cases.
  • Fraud pattern analysis.
  • Collaboration with the client's fraud prevention team to provide insights and recommendations for better fraud detection and prevention.

Performing Model Runs

  • Operating the model in accordance with the client-preferred frequency.
  • Generating potential suspicious customers.

Customer Support and Assistance

  • Customer support to address any queries or issues related to the risk fraud detection service.
  • Assistance with any technical or operational concerns.

Reporting

  • List of blocked customers.
  • Quarterly risk report (only available with Investigation and Analysis Support).

Reduce manual reviews efficiently
with the risk & outlier detection model

Reduced Review Scope
Reduced Review Scope
Reduces >99% customers from the review list.
Precise Identification
Precise Identification
Targeted focus on anomalies, reducing manual workload.
Cost-Efficient Operations
Cost-Efficient Operations
Minimized manual review efforts lead to drastic cost reduction.