One of the largest retailers in South America required a comprehensive solution to manage application fraud

One of the largest retailers in South America required a comprehensive solution to manage application fraud


Falabella is a multinational chain of department stores owned by Chilean multinational company S.A.C.I. Falabella

Company size

10,001+ employees


Retail and Ecommerce



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Falabella was seeking to improve its fraud detection and prevention processes for credit card applications. The company chose GBG to provide a user-friendly and flexible solution to protect customers and enhance their experience in a highly competitive retail market.


US $8.4m

Identified in fraud for credit card applications in 1 year

The challenge

Falabella is one of the largest retail companies in South America. Its banking subsidiary, Falabella Financiero, was founded in 1989 to offer credit access to department store customers and has now evolved into a comprehensive provider offering banking , insurance and travel services.

The company was exposed to an estimated level of potential application fraud of $8.4m a year in consumer credit card applications.

Falabella required a solution to identify, mitigate and investigate fraud in credit card applications, while minimising any impact on customer experience and reducing the need for the manual investigation of suspected fraud cases.

In addition, business rules for fraud detection and prevention needed to be adaptable rapidly and easily to changing business and regulatory requirements.

GBG has provided us with a very user-friendly tool where we have the option to create rules in a very agile way.

The solution

GBG Instinct is a fraud detection, risk and compliance management solution that offers the flexibility to upscale with advanced capabilities for a future-proof approach to guard against complex fraud typologies and financial crimes.

Falabella selected GBG Instinct over other vendors through a competitive procurement process, due to the superior functionality the solution offered, without the need for additional development or configuration requirements.

GBG Instinct provided frictionless customer onboarding while uplifting fraud detection accuracy by up to 30%, leveraging advanced intelligence and predictive analytics.

Falabella is now to able to validate and onboard legitimate customers with automated precise, sub-second risk assessment and decisioning, enabling straight through application processing.


The outcome

Falabella has experienced multiple benefits in its ability to detect fraud and to process consumer credit card applications, without impacting the customer experience, including:
• US$8.4m identified in fraud for credit card applications in one year through using the GBG Instinct solution, without any impact on customer experience.
• An improved ability for Falabella to respond rapidly to changing business and regulatory requirements.
• The customer-configurable rules engine in GBG Instinct enabled Falabella to avoid the need for expensive and time-consuming change control requests and the use of scarce IT resources.

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