Real-Time Fraud Detection for Financial Services on AWS

The Challenge

Financial services organizations face intensifying pressures: escalating fraud ($33.83B in global card fraud losses in 2023), stricter regulations (Basel III, GDPR, AMLD, PSD2), rising mainframe costs, and customer expectations for digital-first experiences. Batch reporting and fragmented systems slow fraud response and make compliance harder to manage.

Solution Overview

Real-Time Fraud Detection for Financial Services on AWS provides a unified streaming data platform that processes events as they happen—supporting low-latency analytics, ML, and event-driven workflows for fraud detection, compliance monitoring, and customer engagement.

How it works:

Ingest — Transaction events from core banking, payments, card networks, digital channels, and CRM systems flow into Amazon MSK or Kinesis Data Streams in real time.

Process — Ververica's Unified Streaming Data Platform (Apache Flink®) performs stateful complex event processing, enrichment joins, and anomaly detection at sub-second latency.

Score — Amazon SageMaker real-time inference endpoints apply ML-based fraud probability scoring; Feature Store manages online/offline features for model consistency.

Act — Fraud/AML decision events route through Amazon EventBridge and SNS to case management for analyst triage; proactive alerts minimize financial loss.

Report — Curated datasets flow to Amazon Redshift and QuickSight for regulatory dashboards and compliance reporting.

Audit — All events persist to Amazon S3 for immutable audit trails, replay, and model retraining.

Key Business Outcomes

• Sub-second fraud detection — p95 latency < 1s from ingestion to alert
• 80–90% mainframe cost reduction — Offload legacy MIPS batch workloads to streaming
• 10–20% customer engagement uplift — Real-time Customer 360 for personalization and next-best-action
• Automated compliance — Continuous monitoring for Basel III, GDPR, AMLD, PSD2, SOX
• 99.9% platform availability — Multi-AZ enterprise-grade resilience

Use Cases

• Real-time fraud & AML detection — Detect abnormal behavior, trigger proactive alerts, minimize loss
• Regulatory compliance automation — Continuous aggregation of liquidity/risk metrics with automated reporting
• Customer 360 & personalization — Rolling customer profiles from streaming behavioral data
• Mainframe offloading — Migrate batch processes via CDC into event-driven streaming

AWS Services Used

Transport: Amazon MSK, Kinesis Data Streams, AWS DMS (CDC) Processing: Ververica Unified Streaming Data Platform (Apache Flink®) on Amazon EKS Storage & Analytics: Amazon S3, AWS Glue, Amazon Redshift, DynamoDB, OpenSearch AI/ML: Amazon SageMaker (training, endpoints, Feature Store), Amazon Bedrock (GenAI) Integration: Amazon EventBridge, AWS Lambda, SNS/SQS, API Gateway Security: AWS IAM, KMS, WAF, VPC, GuardDuty, Macie, CloudTrail, Config, Audit Manager Visualization: Amazon QuickSight

Deployment Options

• Ververica Platform (VVP) — Self-managed on Amazon EKS for full control and data sovereignty
• Ververica Cloud BYOC — SaaS with data in the customer's own AWS account
• Ververica Cloud (VVC) — Fully managed SaaS for rapid time-to-value

Security & Compliance

• End-to-end encryption (in transit and at rest) via TLS and KMS
• Role-based access control with IAM, MFA, and SSO/RBAC
• Immutable audit logging via CloudTrail and Audit Manager
• Aligned to GDPR, SOC 2, ISO 27001, PCI DSS, Basel III/IV

Why Noventiq + Ververica on AWS?

Noventiq (AWS Premier Partner) brings cloud migration, AI/ML enablement, security expertise, and delivery governance with 250+ AWS certifications across Migration, Security, Data & Analytics, and AI Services.

Ververica (creators of Apache Flink®) contributes enterprise-grade streaming platform depth, professional services, and training—processing billions of transactions per day.

AWS provides financial-services-grade controls, global region coverage, and managed services underpinning the entire solution.

Getting Started

Start with a Use Case Workshop, then move into a funded pilot. Typical 12–18 month roadmap:

Phase 1 (Months 1–6): Foundation & Pilot — Infrastructure, Ververica integration, fraud/AML pipeline Phase 2 (Months 7–12): Scale — Production rollout, Customer 360, cross-border monitoring Phase 3 (Months 12–18): Expansion — Mainframe offloading, GenAI reporting, regional expansion

Support

• Ververica: Streaming platform operations, Flink SQL/CEP, performance tuning
• Noventiq: AWS infrastructure, AI/ML endpoints, security, banking integrations
• Joint governance: Single ticketing, SLAs (P1 24×7), monthly reviews

Target Industries

Banking · Insurance · Fintech · Payment Providers · Wealth Management · RegTech