June 22, 2016
“How is machine learning helping to tackle online fraud?” - Payments & Cards Network’s e-magazine
Luke Reynolds, Fraud Director at Featurespace, has written for Payments and Cards Network, about how machine learning is helping to tackle online fraud. Since EMV rolled-out in the US last year, there has been 11% rise in fraud (according to PYMNTS.com). It is hard to stay ahead as the criminals are as sophisticated in their techniques as the companies like Featurespace who are stopping them. Machine learning has the promise to beat them at their own game.
Machine learning is an area of computer science where computers learn with minimal human intervention through experience. It enables computers to find insights from the data without being told where to look. Understanding data trends at high speed allows systems to accurately and efficiently detect anomalies in these trends. Whilst human analysts can do this, it is at a much slower pace and can be less accurate. From experience, Luke knows that fraud drops down the priority list as new payment processes are adopted. Financial institutions are under pressure to provide a seamless and secure customer experience.
Organisations need fraud systems that can interpret vast volumes and complex aspects of customer behaviour quickly and efficiently, whilst reducing customer friction. After 20 years battling fraud, Luke understands that financial institutions need fraud systems which keep ahead by understanding individual behaviour in real-time.
Machine learning fraud prevention systems, like Featurespace’s ARIC engine, monitor every event and transaction taking place in real-time. Fraud attacks stand out and genuine customers are easy to recognise.
This approach is being adopted by a number of large companies including TSYS, the largest payment processor in the United States, proving that there is a demand for this machine learning approach to strengthen their position with clients to provide actionable insights, in real-time.
Read the full article on Payments & Cards Network.