July 17, 2017

Contactless fraud is on the rise: Is it worth the worry? - Payment Eye

Financial Services Expert, Sean Neary, explores the rise of contactless fraud for Payment Eye.

The number of contactless payments is soaring, making up more than half of in-store card payments of up to £30, according to Barclaycard. This has inevitably led to the rise in contactless fraud by 150% to £7million in 2016 (Fraud Action UK). So, what's being done? As well as banks improving security standards and the incoming PSD2 regulation, the latest artificial intelligence systems are helping to identify genuine customers from fraudsters, to stop contactless fraud occurring in real-time. 

The ARIC Fraud Hub is an advanced machine learning system which builds individual profiles, so when a customer's "normal" behaviour changes, it flags as possible fraudulent activity for further investigation or further security measures. Understanding each customer's behaviour in real-time means fewer genuine customer transactions are stopped at the point of transaction, be that card not present or contactless payment.

With new methods of payment, comes new types of fraud - ARIC Fraud Hub detects both known and unknown fraud, including new kinds not seen before. This means that it can not only lower the cost of fraud for financial services but can help to better protect consumers against the rising threat of fraud.

Read Sean Neary's full article on Payment Eye.