Plavno
Cases
AI-Powered Fraud Detection System for a FinTech Startup

AI-Powered Fraud Detection System for a FinTech Startup

Need

AI-powered fraud detection system to safeguard user transactions, meet compliance standards, and reduce manual review

Solution

Custom AI-powered fraud detection system for a FinTech startup that uses data analysis, machine learning algorithms, and behavioral analytics

Technologies

Python

Django

PostgreSQL

Kafka

TensorFlow

Result

92%

Reduction in fraudulent transaction success rate

73%

Reduction in false positives

42%

Lower operational costs

Customer

Our client is a fast-scaling FinTech startup headquartered in Western Europe, founded in 2019 by a group of former investment bankers and tech entrepreneurs. The company set out to disrupt traditional banking by offering digital-first financial services tailored to Millennials, Gen Z, and underserved segments of the population who prefer fast, mobile-first experiences over conventional banking. Within just three years, the startup grew from an MVP-stage mobile wallet to a fully regulated neobank operating across multiple EU countries.

Behavioral analytics

Challenges & solutions

Problem

As the startup scaled, so did the number of fraudulent attempts—from identity theft and account takeovers to card testing and synthetic fraud. Their legacy rule-based system couldn’t adapt to evolving fraud patterns, leading to:

High false-positive rates blocking legitimate transactions
Delays in transaction processing due to manual review
Reputational and financial risks
Inability to meet tightening EU regulatory compliance standards (PSD2, AML, KYC)

The client urgently needed an AI-powered fraud detection system for a FinTech startup that could provide accurate, real-time decisioning without compromising customer experience.

Solution

Plavno designed and implemented a robust AI-Powered fraud detection system for a FinTech startup, combining machine learning models, behavioral analytics, and real-time transaction monitoring to identify and prevent fraud with high accuracy.  

Key Objectives 
We aimed to deliver a scalable, real-time AI-powered fraud detection system with the following goals:

Instantly detect and block fraudulent transactions (<300ms latency)
Minimize false positives using adaptive machine learning
Ensure full compliance with PSD2, AML, and KYC regulations
Seamlessly integrate with existing FinTech infrastructure
Automate manual reviews and improve fraud team efficiency
Cover all channels: payments, logins, account creation

Rollout Strategy
Plavno executed a phased rollout strategy for the AI-powered fraud detection system for a FinTech startup, starting with a detailed discovery and risk assessment phase, followed by data preprocessing and model training using historical fraud patterns. An MVP was deployed in shadow mode to benchmark performance, then A/B tested in a live environment to fine-tune accuracy and reduce false positives.

Once validated, the system was fully integrated across all transaction channels with real-time APIs, automated workflows, and compliance dashboards. Post-launch, continuous monitoring and model retraining ensured the system remained adaptive, scalable, and regulation-ready.  

Results
The AI-Powered fraud detection system for a FinTech startup delivered immediate and long-term impact:

92% reduction in successful fraud attempts
73% drop in false positives
<300ms decision latency for real-time scoring
Full compliance with EU financial regulations
42% cost savings in fraud team operations

By leveraging advanced AI and behavioral analytics, Plavno helped the FinTech client shift from reactive fraud management to a proactive, automated fraud prevention strategy that scales with their growth.

Features

Real-Time Fraud Scoring: Instantaneous decision-making using AI/ML
Adaptive Machine Learning Models: Constantly improving fraud detection accuracy
Multi-Channel Monitoring: Supports payments, logins, account creation, and more
Explainable AI: Transparent scoring for regulatory compliance
Behavioral Analytics: User patterns enhance fraud detection
Custom Rule Engine: Combine AI with business-specific logic
Alerts & Dashboards: Real-time fraud analytics for risk teams

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process

Crystal clear process

Agile methodology forms the cornerstone of our work philosophy. Through a seamless blend of innovative practices, including regular demos, comprehensive progress tracking, and a unique pay structure based on hours invested, we've constructed a workflow that ensures optimal outcomes and client satisfaction.

discovery

design

development

Testing

Launch

Maintenance

Conduct market research

UX Research

Components

Perform integration testing

Address issues in staging environment

Audience analysis

Moodboards

Develop UI components

Test personalized algorithms

Monitor customer satisfaction

Identify key features

Prototyping

API integrations

Deploy to production

Gather user feedback

Define project scope

UI Design

Implement custom features

Address and fix bugs

Updates and improvements

project team

Launch, accelerate and support your business with our teams

Dmitry

Frontend

Expertise

Fullstack Developer with more than 5 years of experience in React and Node.js.

TypeScript

Node.js

Express

Next.js

React

Yan

Expertise

Experienced QA Engineer with a strong background in Cypress and Selenium automation testing.

Postman

Selenuim

Bamboo

Python

ADB

Aleksandr

DevOps

Expertise

Lead DevOps with 6+ years of experience in implementing the entire infrastructure and architecture.

Dart

Terraform

Kubernetes

Docker

Azure

Testimonials

“They really understand what we need. They’re very professional.”

The 3D configurator has received positive feedback from customers. Moreover, it has generated 30% more business and increased leads significantly, giving the client confidence for the future. Overall, Plavno has led the project seamlessly. Customers can expect a responsible, well-organized partner.

Sergio Artimenia
Commercial Director, RNDpoint

FinTech

Project description

Plavno has developed a web application for a product development company. They’ve built a 3D configurator that allows clients to design a unique final product by choosing colors, materials, and other options.

“The quality of their work speaks for itself.”

Plavno has completed the project within five months and helped to save $400,000 on client’s crypto startup launch. The client has also recorded one million onboarded users in a year. Moreover, Plavno provides high-quality codes, offers 24/7 interactive support, and communicates well.

Margarita Gushchina
Recruiter, Expert Soft

Blockchain

Project description

Plavno has created a multi-layered ecosystem designed to accelerate the ownership economy and address a software development firm's main paradigm shifts. They've used Node.js, Solidity, and PostgreDB.

“We are very satisfied with their excellent work”

Through the partnership with Plavno, we built a system used by more than 40 million connected channels. Throughout the engagement, the team was communicative and quick in responding to our concerns. Overall, we were highly satisfied with the results of collaboration.

FinTech

Project description

Plavno was hired by a YouTube network to develop an internal portal for bloggers that handled Google reports for their company. They also built an e-wallet and a system where users' information was collected.

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