Featurespace CTO and Co-founder, Dave Excell, tackles the topic of fraud for CBR.
Dave Excell explores what tactics fraudsters use and what can be done to stop them. The financial sector is facing rapid transformations across the industry from mobile banking to contactless transactions, providing fraudsters with new channels to exploit. These criminals are also increasingly sophisticated, they understand traditional rules-based systems, which focus on detection at the point of transaction. Fraudsters have figured out how to successfully manipulate these systems, so they are no longer enough to protect customers or business revenues.
A new machine learning approach to prevention, like the ARIC platform, can stop fraudsters in their tracks. Advanced machine learning systems build individual profiles that look at all interactions, so when a customer’s “normal” behaviour changes, it can be understood in context and potentially flagged for possible fraudulent activity for further investigation ahead of transactions being made.
The ARIC platform understands each customer’s individual behaviour in real-time, which means fewer genuine customer transactions stopped at the point of transaction. At the same time, it can detect more fraud, including even new and unknown types – important in an industry changing so quickly.
Read Dave’s full article on Computer Business Review.