About Koin
Koin is a financial technology company specializing in anti-fraud solutions and payment processing for e-commerce. With a focus on security, Koin aims to help businesses grow while minimizing fraud risks.
Investment Details
Koin has announced a $5 million investment to bolster its presence in Latin America, with a strategic emphasis on the Mexican market. This investment will be allocated towards technological development, operational expansion, and platform evolution to establish a leading position in digital fraud prevention within the region.
The Rising Fraud Issue in E-commerce
According to the Global Ecommerce Payments & Fraud Reports 2024 by Merchant Risk Council (MRC), businesses allocate 19% of their revenue to fraud management. This investment by Koin aims to address the growing concern of e-commerce fraud.
Koin’s Current Operations and Achievements
Currently, Koin operates in eight Latin American countries. In the past year, it processed over 21 million transactions using its anti-fraud technology, reducing fraud attempts and increasing sales conversion for more than 50 leading brands. Some of Koin’s partners include Jetsmart, Frávega, Boca Juniors, River Plate, BestDay, and Despegar.
Mexico as a Strategic Market
With Mexico being one of the fastest-growing e-commerce markets in Latin America, experiencing a 20% increase in 2024 and reaching a value of 789,700 million pesos (according to AMVO data), Koin aims to expand its commercial partnerships in this region.
“Mexico is a strategic market for our operations, and we are focused on helping businesses grow without compromising security. We expect to triple our local operations and continue innovating to meet market needs with cutting-edge technology and customized solutions,” said Alejandro Morón, Director of Fraud Prevention at Koin.
Koin’s Advanced Anti-Fraud Solution
Koin’s anti-fraud solution combines Artificial Intelligence, machine learning, and human analysis, referred to as “augmented intelligence.” This approach enables precise fraud detection, reduces false positives, and increases transaction approval rates.
“Our strategy combines predictive technology with dynamic, industry-specific rules. We don’t use generic models; we train our algorithms using each client’s specific data, allowing us to anticipate new threats and respond swiftly,” explained Koin.
Additional Services Offered by Koin
Koin also provides payment services through “buy now, pay later” (BNPL) options and operates in the tourism, retail, fashion, and electronics sectors.
Common E-commerce Fraud Types in Mexico
According to Paymentology, common e-commerce fraud types in Mexico include:
- Card-Not-Present (CNP) Fraud: Using stolen data to make unauthorized online purchases.
- Identity Theft: Impersonation and misuse of personal data to open fraudulent accounts.
- Friendly Fraud or Chargebacks: Unaware customers disputing legitimate purchases, causing losses for merchants.
- Phishing and Social Engineering: Strategies to deceive consumers and obtain confidential information.
