The current health crisis forces many businesses to boost their online presence. This combined with the pre-existing trend towards digital transformation, leads to an increased need for faster, better identity and transaction authentication management. To address this challenge, and building on the success of its DigitalKYC product, Telindus has developed a KYT solution that helps to detect fraudulent transactions.

While KYC (Know Your Customer) covers the complete customer profiling, KYT (Know Your Transaction) focusses on data-centric information about the transactions conducted by those customers. The aim of KYT is to identify transactions and their underlying unusual behaviors to detect financial crime, notably money laundering or fraud.

A Machine Learning-fueled KYT solution

Backed by several years of experience and renowned expertise in the field of KYC automation, Telindus has developed a KYT solution that detects anomalies indicating possible fraudulent transactions. In order to increase the efficiency of the rule engine, Telindus incorporated a Machine Learning module into its KYT solution. The ML module contributes to validating the effectiveness of existing rules. Importantly, it also identifies potential new fraud patterns, based on which actualized rules are proposed.

KYT has already been deployed in several major European banks within the context of payment fraud prevention. This is primarily due to the need to mitigate fraud as well as a growing demand on the part of supervisory authorities for reporting, i.e. suspicious transaction reports (STR) and suspicious activity reports (SAR). These reports must be provided fairly soon after a transaction is completed and contain sufficiently clear and full information to allow the regulator to assess the activity flagged, while enabling financial institutions to avoid blocking legitimate transactions.

On the other hand, fraudsters are becoming more sophisticated and creative. For example, fraud rings - organized fraudsters associations that can consist of several teams of criminals - move funds among themselves so as to make fraud detection more difficult. Yet, it is humanly impossible for organisations to monitor the millions of customer transactions performed every day in our increasingly digitalized economy.

Telindus is in the process of delivering KYT and KYT-derived solutions across different clients from various industries in Europe and beyond. That includes - in addition to the financial sector - gaming, e-health, and e-commerce.

Turning Clients into Industry Partners

"DigitalKYC and DigitalKYT turn our clients into true industry partners. This is because our solutions are on one hand highly adaptable to any business model, as verified with different types of client, and very evolutive since they systematically embed the newest technology," says Frank Roessig, Head Cloud Applications, Data & AI at Telindus. "We work in very close collaboration with our clients as part of their digitalization effort," he adds. "By tailoring the solution exactly to their needs and to the needs of their end-users, we make our clients more compliant and more competitive."

"Our purpose is to explore and develop new value by driving use cases with our clients," explains Rebecca Marciano, Digital Business Developer at Telindus. "We want to build the future of KYC and digital identity on the basis of solutions guaranteeing improved service reliability and a fluid customer experience through omni-device and responsive interfaces."

A Relevant Player within a Powerful Group

Telindus is a leader in converged ICT and telecom services in Luxembourg and provides global solutions to all businesses and public administrations. Its areas of expertise include fixed and mobile telecommunications, ICT infrastructure, multicloud, AI, Fintech solutions, cybersecurity and managed services.

Telindus has extensive experience in working with the financial sector and, as such, is perfectly aware of the KYC and compliance challenges faced by regulated industries. Being itself a regulated entity supervised by the Financial Sector Surveillance Commission in Luxembourg (CSSF), the firm operates its clients' solutions on a highly secure and fully compliant infrastructure.

The Company's approach to Digital Transformation is based on Agile methods for fast time-to-production and easy scalability, and draws on Design Thinking to create client and user-centric solutions.

Telindus is a member of the Proximus Accelerators, expert companies whose combined competencies allow to provide integrated 360° digital solutions covering multiple aspects of the transformation journey such as security, IOT and application integration.