Vonage > Case Studies > Remitly Enhances Security and Reduces Fraud with Vonage APIs

Remitly Enhances Security and Reduces Fraud with Vonage APIs

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Technology Category
  • Cybersecurity & Privacy - Identity & Authentication Management
  • Sensors - Level Sensors
Applicable Industries
  • Education
  • Finance & Insurance
Use Cases
  • Machine to Machine Payments
  • Voice Biometrics
Services
  • System Integration
About The Customer
Remitly is the largest independent digital remittance company in the U.S., founded in 2011 by Matt Oppenheimer. The company was born out of Oppenheimer's experience living in Kenya, where he saw the difficulties and high costs associated with sending money across borders. Today, the Seattle-based company employs over 400 people and transfers over $2 billion annually from customers in the U.S., United Kingdom, and Canada, to recipients in India, Mexico, Latin America, and the Philippines. The funds transferred by Remitly users are often essential for their loved ones, used to pay rent, buy food and clothing, or pay for education.
The Challenge
Remitly, the largest independent digital remittance company in the U.S., was facing a significant challenge in reducing the number of fraudulent transactions that resulted in monetary losses. The company, which transfers over $2 billion annually from customers in the U.S., United Kingdom, and Canada, to recipients in India, Mexico, Latin America, and the Philippines, needed a secure and efficient way to authenticate transactions and communicate with customers. The funds transferred by Remitly users are often lifelines for their loved ones, making it imperative that these remittances are sent through legitimate, highly-secure channels. The company needed a solution that would safeguard against fraud and suspicious activity, while also providing a high level of transparency and communication for its clients.
The Solution
Remitly turned to Vonage and its SMS API with Two-Factor Authentication to address its challenge. Vonage was recommended by an industry specialist for its strong communication options and the metrics it provides around each recipient. The Vonage team helped Remitly set up the system, making it a 'plug-and-play' solution rather than requiring a lot of infrastructure setup. The Vonage SMS API not only helped reduce fraudulent transactions but also proved to be a cost-effective way to communicate with customers. The only personal information known to Remitly is the recipient’s phone number, making SMS the most scalable and efficient way to communicate with customers or their recipients. Remitly also appreciated the ongoing technical support that Vonage offers.
Operational Impact
  • The implementation of Vonage's SMS API with Two-Factor Authentication has not only helped Remitly reduce fraudulent transactions and save money, but it has also improved the company's communication with its customers. The system is easy to use for sending messages, and Vonage's ongoing technical support has been highly appreciated. The solution has provided a high level of transparency and communication for Remitly's clients, enhancing their trust in the service. Moreover, the fears of reduced support as both companies grew were quickly abated, with Vonage maintaining a consistent high quality of customer support.
Quantitative Benefit
  • Fraudulent transactions were dramatically reduced
  • An estimated $250K – $300K have been saved since implementing Vonage
  • Remitly transfers over $2 billion annually, a process made more secure and efficient with Vonage

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