Cashfree Payments launches ‘RiskShield’ to tackle merchant payment frauds

By Gloria Mathias

Cashfree Payments has announced the launch of ‘RiskShield’, India’s real-time risk management solution for payment gateways.

It aims to reduce fraudulent activities by up to 40%. Built in-house, this solution will also help Indian businesses reduce chargebacks and disputes, empowering them with tools designed to combat fraudulent transactions with precision and secure financial stability.

Akash Sinha, CEO and co-founder of Cashfree Payments said, “As one of the largest payment service providers, it’s our responsibility to make the ecosystem safer and more secure for Indian businesses. We built ‘RiskShield’ to empower merchants to fortify their defence against fraudulent transactions. This product is the result of years of Cashfree Payments’ research and analysis of high-risk transactions into a set of tools that merchants can now use as a complete risk management solution through which they can curb cybercrime. We believe RiskShield will redefine the security landscape of online transactions in India, offering merchants unparalleled protection and peace of mind.”

As per reports, in FY 2023, the RBI documented bank frauds worth close to INR 30,000 crore.  This surge in fraudulent activities due to digital transactions poses a threat to security, causing critical issues for businesses such as direct revenue loss, bank account debit freezes, working capital blockages, operational complexities, legal expenses, and the looming threat of account termination due to high chargebacks. Cashfree Payments’ RiskShield provides a secure business environment by mitigating fraud, minimising litigation risks, improving transaction experiences, and fostering positive customer relationships.

RiskShield uses advanced artificial intelligence and machine learning algorithms across its merchant network to identify fraudulent transaction patterns and safeguard merchants from huge potential losses and litigation risks.

Key features of RiskShield:

• Shield Pro: Employs automated machine learning-based mechanisms to block fraudulent accounts, utilising Cashfree Payments’ collective intelligence to identify and restrict fraudsters.
• Blacklists: Currently, merchants can block transactions from specific mobile, email, IP addresses, and cities based on their IP address, Card BINs, UPI handles, and card numbers.
• Smart Limits: Enables merchants to add limits on the frequency and cumulative sum of the amount a single customer or payment instrument is allowed to pay to them per hour, day, week, fortnight, or month.