Converting losses into profit: A deep dive with Frogo on the future of fraud prevention

In the high-stakes world of digital markets and E-commerce, fraud is often discussed as an inevitable shadow — a persistent "tax" on growth. But as the digital landscape shifts, the tools we use to defend it must do more than just build higher walls; they need to get smarter.

In this article, Constantin Krivka, Head of Operations at Frogo, discusses how the industry is moving away from manual "budget burning" toward a model of predictive safety. 

As a brand of the RedCore international business group, Frogo has quickly made a name for itself by treating fraud prevention not as a cost center but as a strategic engine for profitability.

In this interview, Kostiantyn breaks down the mechanics of "Dynamic Thresholds," the power of graph-based forensics, and why the "black box" of AI is finally becoming transparent for COOs.

Most COOs view fraud prevention as a necessary cost center — essentially a "tax" on doing business. When you talk about cutting manual review costs by 60%, are we talking about downsizing teams or is there a more strategic way to stop "burning" that budget?

Kostiantyn Kryvka: I actually wouldn’t call onboarding an anti-fraud tool a “tax.” It’s much more of an investment. It’s a solution that brings value from the implementation stage and shows a positive ROI within the first month. When you set things up correctly, you aren’t just stopping bad actors; you’re segmenting your audience, boosting retention and keeping funds safe that would otherwise be stolen.

Downsizing shouldn't even be on the radar here. On the contrary, effective fraud protection is a primary driver of revenue growth, which naturally leads to scaling the business. That’s exactly when those "spare hands" become your most valuable asset. Since your team already understands the inner workings of your "internal kitchen," you can pivot their focus. Instead of asking them to manually verify every single user action, you can delegate high-value, strategic tasks — such as researching new markets or analyzing user segments to drive loyalty.

Ultimately, this isn't about cutting heads; it's about transforming repetitive roles into genuine career development opportunities while your business expands.

Frogo’s positioning emphasizes "converting losses into profit." In practical terms, how does moving from a static scoring engine to Frogo’s "Dynamic Thresholds" change the daily workflow for an operations team?

Kostiantyn Kryvka: Static rules won’t disappear entirely, but relying on them alone is an outdated strategy with too many gaps. At Frogo, we combine both.

To give you a simple example: a static rule might be “manually check every transaction over €500.” It’s easy to set up, but it won’t catch a fraud group moving funds through dozens of €400 transactions. A dynamic rule, however, monitors the regular activity of a user over a specific window. If there’s a sudden spike in the number or volume of transactions, it triggers an alert.

The logic also works in reverse: it prevents your high-value users from facing annoying delays during their usual high-volume activity. Ultimately, the operations team deals with significantly fewer false alarms and can focus its energy on deep investigations of truly suspicious cases.

We see many brands in high-growth sectors like iGaming or E-commerce struggle to scale because their manual review team can’t keep up with traffic spikes. How does the "Graph-Based Forensic Tool" allow a lean team to manage a massive influx of users without a proportional increase in Opex?

Kostiantyn Kryvka: Investigating a case usually involves digging through device IDs, IP addresses, card hashes, and linked accounts. The old-fashioned way is a table view where you perform dozens of repeated searches to piece together a network. It’s time-consuming, boring, and prone to human error — it's easy to miss a tiny detail in a massive dataset.

At Frogo, we’ve removed that friction. Our graph-based tool uses a friendly interface to reveal entire networks connected by multiple attributes in just one click. You can instantly see how users, cards, and devices are linked. To save even more time, Frogo displays the last action taken on a profile, so you don’t forget to block every account associated with that specific fraud farm. It allows a small team to do the work of a much larger department.

Fraudsters are famously agile — they pivot as soon as they hit a wall. For a COO looking at the long-term roadmap, how does Frogo’s AI Approach ensure the business isn't just catching yesterday’s fraud but is actually "One Leap Ahead" of tomorrow’s patterns?

Kostiantyn Kryvka: We focus on proactive prevention rather than just looking at what happened in the past. Of course, building that kind of protection without blocking "good" traffic requires precision. That is where our team’s experience, specifically in the complex world of iGaming comes into play.

We provide ready-to-use policies for various business events, but we also use AI to detect the smallest shifts in user behavior. This isn't a "set it and forget it" situation; it’s a constant, repeating process of adaptation. By identifying these patterns early, we ensure our partners stay one leap ahead of evolving trends rather than just reacting to them.

If you're talking to a skeptical COO who is wary of "black box" AI, what is the single most important metric — aside from the 60% cost efficiency — that demonstrates Frogo acts as a strategic partner rather than just another vendor?

Kostiantyn Kryvka: Our approach is very straightforward: we never leave a partner alone with a complex tool. This starts at onboarding, where we share best practices and help set up the specific triggers that fit that particular business model. This ensures every decision suggested by Frogo is transparent and explainable.

Throughout our cooperation, we provide real-time support and regular "catch-up" sessions to fine-tune policies. We don't just hand over a login; we act as an extension of their team to ensure they are staying on top of new trends. That partnership and transparency are what truly define a premium service.

As Kostiantyn highlights, the shift from "watching the gates" to "predicting the threat" is what separates growing brands from those struggling with operational bloat. By utilizing tools like dynamic scoring and graph forensics, companies can finally stop treating fraud prevention as a "tax" and start seeing it as a competitive advantage.