The digitally driven retail environment has caused lots of adapt-or-die challenges for payment processors and merchant acquirers, including spotting fraud as it moves from one device and channel to another.

“One of the attacks that I’ve seen in particular is to perform a low-value fraudulent transaction in one channel to build trust from within the system, then do a larger-value transaction elsewhere,” said David Excell, founder of Featurespace, a British company that feeds artificial intelligence into behavior analysis in an attempt to track, predict and stamp out fraud that moves among channels.

“There are still friction points that should be solved,” Excell said. “Just last week my credit card was blocked because of a recurring monthly insurance payment that had been on the card for four months. That’s where you can apply AI. To improve spotting that and make the experience better. But there’s still a long way to go.”

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