How PT. ALTO Network Provides World-Class Payment Transaction Security

PT. ALTO Network (ALTO) is Indonesia’s leading provider of end-to-end bank switching and digital payment solutions. Licensed by Bank Indonesia as the institution that principally implements the National Payment Gateway (GPN) to uphold the interconnection and interoperability of Indonesia’s national payment system, ALTO provides a full range of digital end-to-end solutions. ALTO is currently servicing 40+ issuing and acquiring major banks and major non-banks. Handling over 25 million transactions per month, ALTO connects to 100,000+ automated teller machines (ATMs) and 1,000,000+ electronic data capture (EDC) machines across Indonesia.

Learn how INETCO helped ALTO to:

  • Drive financial inclusion and the adoption of non-cash payments across Indonesia
  • Increase the safety and stability of their interbank, debit and digital payment transactions
  • Monitor the SLA process the achieve the target of 99.9% availability for 40+ issuing and acquiring financial organizations
  • Implement world-class performance and security monitoring to comply with VISA requirements

 “Payment fraud is greatly under regulated in Indonesia. Together, with world-class partners such as INETCO, we can actively work to prevent card present and card-not-present fraud attacks. We want to make customers feel safe when it comes to digital payment migration and help our member banks protect themselves against financial loss and a tarnished reputation – neither of which can be easily recovered.” – PATRICCO BARON, CTO, PT. ALTO NETWORK

The Challenge

As a national leader in the payments space, ALTO’s goal is to be the most trusted payment and digital system partner in Indonesia. This means meeting 99.9% up-time service-level agreements, and guaranteeing the security and reliability of every end-to-end consumer payment transaction that flows across their network.

In September 2020, ALTO announced that they had received Bank Indonesia’s approval to form a partnership with Visa, enabling them to expand their business into domestic debit-card transaction processing. In addition to the Visa partnership, ALTO continues to expand their business offerings from a shared ATM interbank network to complete digital payment solutions. This expansion needs to happen without jeopardizing the safety and stability of their existing services.

To manage growing payment volumes, new partnerships and expanding digital services, ALTO needed to get their transaction performance monitoring, payment fraud detection and analytics capabilities up to world-class standards.

The Solution

INETCO Insight is a real-time, cross-functional solution used for payment performance monitoring, payment fraud detection and the analysis of card profitability, customer behaviors and channel usage. It is used by ALTO to:

  • Eliminate transaction performance blind spots and meet customer service-level requirements
  • Manage the performance and security of inter-bank fund transfers (IBFTs) and digital payment transactions
  • Champion payment fraud detection and comply with Visa security monitoring regulations
  • Analyze and report on ATM, Debit, and IBFT transactions for member banks

The ALTO fraud risk team relies on INETCO Insight to identify and analyze transaction-level payment fraud attacks in milliseconds – before major financial loss, customer risk or reputational harm occurs. The round trip performance of every domestic ATM, debit and inter-bank funds transfer transaction is correlated and profiled in real-time, giving ALTO complete visibility across 120+ links that include:

  • From every issuing and acquiring member bank to the ALTO Retail Payment Solution (RPS) switch
  • From the ALTO RPS switch to the host authorization points

In addition to visibility across the end-to-end payment journey, INETCO Insight decodes all protocol message fields contained within each transaction, including message types, card numbers, amounts, transaction dates and times, response codes, terminal IDs and ISO 8583 messages. These are the data fields that the ALTO fraud risk team uses to meet Visa security requirements and to feed proactive rules-based alerts, fraud analytics, predictive machine learning models and real-time risk scoring for each individual customer – instantly updated every time a transaction occurs.

The Benefits

In summary, INETCO Insight has helped ALTO to:

  • Monitor the SLA process to achieve the target of 99.9% availability for 40+ issuing and acquiring financial organizations
  • Comply with VISA’s real-time performance monitoring and security requirements
  • Streamline resources and become proactive about payment performance issues and fraud attacks impacting inter-bank fund transfers (IBFTs), digital payments, debit and ATM transactions – isolate the root cause of performance issues on average 85% faster
  • Avoid major financial loss, customer frustration and reputational harm associated with undetected payment fraud, false positives and transaction completion issues
  • Safely expand business offerings from a shared interbank network to complete digital payment solutions
  • Improve communications with member banks while driving faster, fact-based decisions

“With INETCO Insight, ALTO’s network operations team can slash the frequency, duration and impact of incidents impacting payment transaction completion. We can uncover the root-cause of problems and begin immediate remediation — before customers even notice there is an issue.” – PATRICCO BARON, CTO, PT. ALTO NETWORK

The Future

Next steps will be for ALTO to implement the INETCO Insight fraud case management and logical workflow rules for both reactive investigation and proactive identification of transaction-level fraud attacks. With a systematic and repeatable process for tracking, evaluating and prioritizing flagged payment transactions, ALTO will be able to speed up triage and close fraud cases even faster.

ALTO will also be expanding their INETCO Insight usage to monitor and analyze mobile payments.