Detection

Today’s digital economy is rife with both remarkable business opportunities and challenges to overcome. A prime example in the latter bracket is the security of our online payments.

It is not just the world’s shopping and communication habits that have shifted primarily to digital channels. The high turnover of e-commerce has become an attractive target for fraudsters, ushering in a new era of fraud detection and prevention. Whether carried out by criminal organizations or the isolated actions of a sole operator, digital payment fraud can lead not only to considerable financial loss, but also have a major impact on consumer confidence.

Outdated payment fraud detection systems that rely on rules-based detection and basic supervised machine learning are not advanced enough to meet current requirements. However, we now have many alternative tools at our disposal to detect and prevent fraud effectively. This is where AI (Artificial Intelligence) comes in. The incorporation of AI in fraud prevention and detection software helps reduce revenue loss due to fraudulent transactions, while maintaining a smooth customer experience.

Fraud prevention involves analysis to identify patterns of fraudulent events to prevent them from occurring in the first place. Meanwhile, fraud detection refers to the ability to detect an occurrence, looking for patterns and recognizing the occurrence of the event. In this latter bracket, AI works with machine learning technology to allow businesses to design scenarios, spot anomalies, and detect customers with a high-risk profile and therefore prevent operations that can hide fraud.

In addition, detection history facilitates the construction of a database that feeds the AI ?? in the enhancement of the payment fraud prevention function. This turns facts already identified into a certain standard behavior, which can be identified, and prevented if a second attempt is made.

Fraud in the digital world (and AI’s support in preventing and detecting it) does not stop with payments. Millions of new businesses are launched in the digital world each day, but don’t all arrive with good intentions. Fraudulent sales, money laundering businesses or “mirror” businesses that use the image of trusted companies to deceive customers are all growing in prevalence.

Payment fraud, merchant fraud, money laundering all provide new threats to contend with each day. Keeping ahead of cybercriminals in such a volatile digital market, is not easy, but can be achieved with the right approach and purpose-built tools.

How to Prevent Payment Fraud

This is the case with the experts at Fraudio, who have developed and patented an AI super-brain – one that’s capable of simplifying payment fraud detection and anti-money laundering activities.

Fraudio boasts a proprietary plug & protect centralized artificial intelligence brain. This brain does not require costly configuration – facilitating easy integration – and is continually learning from all transactions. This makes Fraudio a 3rd Generation provider – implementing a disruptive leap from rules-based and machine learning-based solutions trained on individual customer’s data.

Benefits of using AI in Payment Fraud Detection

Thanks to the patent-pending technology behind the Fraudio smart brain, the payments fraud industry can be disrupted by way of a modern SaaS solution. By moving away from a professional service approach, the system benefits the customer’s payment experience and bottom-line results.

Fraudio gives access to an extremely powerful, yet deceptively simple, fraud detection and prevention API, which provides advanced fraud-related AI insights about customers transactions in real-time.

This powerful API SaaS tool allows every customer to maintain conversion rates, while reducing the direct and indirect cost of fraud – ultimately maximizing revenues.

Payment Fraud Detection

• No integration / setup costs
• Payment fraud scores from day one
• Fully configurable risk-appetite thresholds
• Reduction of false positives and maximization of conversion
• Reduced operational costs of fraud management
• Future proofing with constant machine learning updates
• Powerful network effects
• Real time responses below 100ms