Nu Mexico, in response to a surge in financial fraud cases in the country, has announced a $100 million investment in advanced technologies to bolster security and combat fraud in its financial offerings. The move comes amid a concerning rise in fraud cases, with data from SESNSP indicating over 45 thousand cases reported between January and May 2023, nearly half of the total reported in 2022.
The initiative, dubbed “Smart Defenses,” introduces various technology-driven protection tools, including the use of Artificial Intelligence (AI) to identify and prevent fraudulent transactions. Additionally, Nu Mexico is implementing a new telephone verification process, requiring users to validate their identity through the app before connecting to customer service.
Furthermore, Nu Mexico will introduce virtual cards designed for recurring online transactions, automatically expiring after 24 hours for enhanced protection against fraud. Ivan Canales, CEO of Nu Mexico, emphasizes that these features are designed to recognize, alert, and prevent transactions deviating from an individual’s behavior pattern, adding an extra layer of security to financial transactions.
Ximena Salgado, Product Leader at Nu Mexico, highlights the company’s commitment to customer security and financial management tools. The investment raises Nu Holdings’ total investment in Mexico to over $1.4 billion, showcasing the company’s dedication to its top priority globally.
Nu Mexico’s customer base has seen consistent growth, with 1 million new customers acquired in Q4 2023, totaling 5.2 million customers for the year. Deposits in Mexico surpassed $1 billion, indicating the company’s financial strength in the market. With these new functionalities, Nu Mexico aims to maintain its leadership in the Mexican neobank sector and address the growing threats in the financial environment.
