Cashfree Payments Launches 'RiskShield' to Combat Fraudulent Activities

Bengaluru-based payment aggregator Cashfree Payments has introduced a new real-time risk management solution called ‘RiskShield.’ The company claims that this innovative tool can significantly reduce fraudulent activities by up to 40%.

According to Cashfree Payments, RiskShield is designed to empower online merchants with advanced capabilities to combat cybercrime. Users of the product can now block transactions from specific mobile numbers, email addresses, IP addresses, Card BIN, UPI handles, and card numbers, thereby enhancing risk management and fraud compliance.

Moreover, RiskShield allows merchants to impose restrictions on the frequency and cumulative amount of transactions per customer or payment instrument within specified timeframes, providing them with greater control over their payment processes.

Cashfree Payments’ CEO, Akash Sinha, expressed that RiskShield is the culmination of years of research and analysis, aimed at providing merchants with a comprehensive risk management solution.

The solution leverages artificial intelligence (AI) and machine learning algorithms to detect fraudulent transaction patterns across the company’s merchant network, thereby safeguarding merchants from potential losses and legal risks. Additionally, it aids businesses in reducing chargebacks and disputes.

Ramkumar Venkatesan, Chief Technology Officer at Cashfree Payments, highlighted the importance of real-time payment-blocking features and suggested rules for the effective implementation of risk and fraud detection tools.

Merchants using Cashfree Payments’ orchestration platform, FlowWise, can seamlessly integrate RiskShield to prevent fraudulent transactions across various payment aggregators, according to the company.

Cashfree Payments, backed by Y Combinator and State Bank of India, witnessed significant growth in revenue from operations in FY23, reaching Rs 614 crore. However, the company also reported a loss of Rs 133 crore in the same period, primarily due to investment in enhancing its services and infrastructure.

Following approval from the Reserve Bank of India to operate as a payment aggregator, Cashfree Payments has resumed the process of onboarding new merchants, marking a positive development for the company after facing regulatory challenges.