Pinshot is working hard to prevent financial fraud by introducing an AI-based facial recognition system, which blocked suspected fraudulent accounts more than three times as many in the first half of 2024 compared to 2022.
By utilizing an eKYC system that detects various fraud methods such as ID forgery and deepfakes, Pinshot is strengthening customer protection and aims to reduce the incidence of financial fraud reports by 90% in the second half of 2024.
Through its small-amount overseas remittance service 'Coinshot', Pinshot provides 24/7 real-time remittance to 224 countries, ensuring remittance security through direct contracts with overseas banks.
Adoption of 1st-tier financial institution-level security solutions, an industry first
Strengthened prevention of financial fraud through ID verification and facial recognition
Finshot, a small-amount overseas remittance company, announced that it has become the first domestic small-amount overseas remittance company to introduce an AI-based facial recognition system, which has preemptively blocked over three times more suspected fraudulent accounts in the first half of 2024 compared to the same period in 2022.
Finshot is a small-amount overseas remittance company that enables 24/7 real-time overseas remittances to 224 countries worldwide. Through its CoinShot app, it provides non-face-to-face remittance services for both domestic and foreign nationals.
With the spread of non-face-to-face financial transactions, small-amount overseas remittance companies like Finshot have suffered significant damage from financial crimes such as voice phishing that exploit this trend. Consequently, the fintech industry has been strengthening its own fraud prevention systems. As voice phishing techniques become increasingly sophisticated, failure to mitigate the number of financial fraud cases within one's platform can severely impact service growth.
Finshot is the first company to introduce and operate an AI-based fraud prevention solution, and it is gradually enhancing this solution to a level comparable to that of 1st-tier financial institutions. Following the introduction of an ID document verification solution in 2023, Finshot introduced a facial recognition system in early 2024, making it the first small-amount overseas remittance company to operate an AI-based fraud prevention solution.
Finshot actively leverages an eKYC (electronic Know Your Customer) system equipped with AI-based OCR and ID forgery detection technology, as well as facial recognition technology, to proactively prevent suspicious customers. During the registration process, customers are required to take a photo of their ID and a selfie. This process verifies the authenticity of the ID, confirms that the user is a real person, and determines if the face in the ID photo matches the selfie, thus preemptively filtering out accounts that have been remotely hacked or resold.
This feature can also identify customers who have altered the name on their ID or attempted to use deepfake technology for facial verification, detecting even sophisticated techniques that are difficult to discern with the naked eye. These suspicious customers are preemptively filtered out, preventing financial fraud like voice phishing.
CoinShot's Preemptive Blocking of Suspicious Accounts Prevents Financial Fraud
In February 2024, CoinShot administrators noticed that 20 or so registration attempts had been made by the same person on the same day and promptly blocked all related accounts. During the registration process, which involves taking a photo of an ID and a selfie, a cleverly forged capture screen containing someone else's ID was uploaded instead of a physical ID. Finshot's AI-based fraud prevention system classified this as 'false' and provided a numerical indication of the low similarity between the ID photo and the selfie. This helped identify suspicious accounts even in cases that were difficult for administrators to judge visually.
Analysis revealed that most of the IDs used were foreign registration certificates from the early 2000s, prompting Finshot to strengthen its management regulations regarding new financial fraud patterns. Finshot actively uses AI-based eKYC (online identity verification system) to classify accounts attempted by individuals other than the ID holder as suspicious accounts and then blocks them through a preemptive blocking process, actively working to prevent financial fraud.
In 2024, amidst a surge in financial fraud reports, Finshot leveraged AI technology to preemptively block over three times more suspicious accounts in the first half of the year compared to the same period in 2022. This has not only helped identify the types of fraud cases but has also facilitated swift refund procedures. Finshot has stated that it aims to reduce the financial fraud report rate by 90% in the second half of 2024 by further enhancing its AI-based security solution.
In addition, Finshot provides various financial APIs, including overseas remittances, Korea Open Banking, and prepaid electronic payment instruments, and focuses on remittance safety through direct contracts with overseas banks.
Kim Dong-young, Team Leader of Finshot Compliance, stated, “We are experiencing firsthand the effectiveness of the AI solution that we have worked hard to introduce for a long time. We will continue to develop swift and effective consumer protection measures to ensure that CoinShot's diverse international users can safely utilize the service without the risk of voice phishing or financial fraud.”
Introduction of Finshot
Finshot (Service Name: CoinShot) is a small-amount overseas remittance company established in 2017 that operates real-time overseas remittance services to 224 countries worldwide. It serves both domestic and foreign customers residing in Korea, supporting 17 languages and offering multilingual customer support. It also provides safe and reliable financial services through its innovative AI-based fraud prevention solution.
Website: https://finshot.com/
Contact Finshot Strategic Planning Team Lee Ji-eun 070-7732-8342