This week, we sound the alarm in Mexico, due to the growing use of digital accounts by fraudsters. Also, in Colombia, Grupo Aval and Davivienda sign a payment interoperability agreement and Habi obtains US$100 million.
#TopStory
Cybersecurity alert: criminals increasingly acquire digital accounts to commit fraud
The illegal purchase of fintech accounts has set alarm bells ringing among fintechs, who warn of a new mode of fraud that can only be thwarted with great technological effort and data corroboration.
Criminals have been side-stepping digital onboarding security by hiring individuals who open accounts in their own name and allow them to be used commit acts of fraud. This buying and selling of digital accounts in the Mexican market is putting security equipment and systems to the test, according to local digital lender Albo.
“It’s among the most common cases we’ve seen lately. And we know that it’s going to keep growing,” said Carolina Rodríguez, Albo’s vice president of risk and compliance, in the webinar UX + KYC: Capture more clients without friction, organized by iupana.
The company has rolled out artificial intelligence strategies, and validates device IDs and transaction locations in an attempt to thwart the criminals, she said. The fintech also uses data analysis with machine learning to be able to act quickly when blocking accounts.
“[We’re] mitigating, reducing the number of false positives we may have. We’re advancing and learning about this issue,” Rodríguez said.
Identity verification company Jumio, for its part, pointed out that in order to stem this type of fraud, it’s vital to corroborate information across the entire system and identify account holders who use remote account onboarding on a recurring basis. “It’s important to have a record of what happened,” said Samer Atassi, Jumio’s vice president for Latin America and the Caribbean.
To read more about the event, click here.
#Strategic Plays
Grupo Aval, Davivienda and Redeban launch interoperable QR in Colombia
Banco Davivienda and banks owned by the Aval Group have teamed up with the payment solutions company Redeban to introduce an interoperable QR code in Colombia. The tool will allow users to carry out transfers instantly, regardless of which financial institution they use. The companies are the first to test payment interoperability in Colombia, which is working to create an instant, open transfer system.
NuPay creates alliance with iFood in Brazil
Brazil’s Nubank partnered with iFood to spur the use of its cards on the delivery platform. The bank’s customers will be able to make purchases without affecting their NuPay card balance.
Colombia’s Kapital debuts corporate card
Digital platform Kapital launched a corporate card linked to a USDC savings account (a stablecoin backed by US dollars), which offers a means of protection against the devaluation of the Colombian peso.
Also…
- In Brazil, Mastercard joined the Brazilian Association of Cryptoeconomics (ABCripto) with the aim of positioning itself in the crypto market.
- Also in Brazil, C6 Bank launched a checking account for Brazilian clients residing in other countries.
#Investments
Habi obtains US$100M credit line
Colombian unicorn Habi, a platform for buying and selling real estate, closed a US$100 million financing agreement with the Chicago-based alternative investment firm Victory Park Capital. The resources will be used to expand its portfolio of used properties in Colombia, amid increasing activity in that segment of the market.
ID Finance raises US$30M to bolster business in Mexico
ID Finance, a fintech operating in Spain and Mexico, closed a financing agreement with US asset manager SR Alternative Credit for US$30 million to expand consumer lending in the Mexican market. The company told iupana that the loans will be distributed via the MoneyMan platform. ID Finance is also working on the local launch of its digital wallet Play.
Santander announces investment fund in Brazil
Fintechs, investors and technology companies in Brazil seeking investment were invited by Santander to present their proposals as it finalizes the structuring of a corporate venture capital fund with a focus on financial technology.
Scalable raises US$3.9M to finance startups in Brazil
Brazilian fintech Scalable lined up a credit line for R$20 million (US$3.9 million) from SRM Ventures with the aim of boosting financing to software-as-a-service startups.
#People
Visa names new fintech leader
Visa appointed Rodrigo Barros de Paula as leader of fintech alliances for Latin America and the Caribbean. Barros has more than 25 years of experience in the financial sector and has worked in banks such as Itaú.
SalaryFits names head of operations
Brazilian fintech SalaryFits hired Maria Eugenia Mapelli as head of operations. Mapelli has 12 years of experience in finance and technology, including 8 years at Hotmart, a technology developer
#iupanaExclusive
What is Google looking for as its rolls out payment solutions in LatAm? The answer is new avenues for monetizing digital payments. This week, Armando Betancourt tells us how the tech giant makes money from its Google Wallet and GPay products, and sketches out the firm’s plans for the region.
- The tech giant’s solutions eliminate friction in online shopping, which helps improve sales via GoogleAds.
- Google’s payment strategy is closely linked to the positioning of searches in SEO and SEM.
- Regulation and limited technological integration are slowing its expansion in the region.
Get the lowdown on Google’s financial product strategy in this week’s iupanaExclusive.