Thankfully there are several new procedures of preventing and detecting fraud which rely on artificial intelligence, that is the simulation of human thought by computers. Including understanding, reasoning, and self-correction.
Fraud prevention and detection is an perfect use case for artificial intelligence, for these reasons.
Extensive real-time information analysis. Multiple data points — real time and historic — have to be considered before classifying a transaction as fraud. An artificially intelligent system can do this, with its higher computing power and capacity to rapidly analyze large volumes of information.
Continuously evolving fraud patterns. A system which can’t learn and identify new patterns of fraud will fail to discover new fraud patterns. Many artificially-intelligent fraud systems are constructed with self-learning features.
Quick turnaround. Most fraud checks have to be carried out immediately, before the transaction is finished. Fraud vendors offering artificially intelligent systems have fulfilled this vital requirement by encouraging transaction times in the low milliseconds. The combination of access to fast computing tools and optimized algorithms make fast turnaround possible.
A number of vendors now offer products based on this technology. Here are a couple of them. There are a lot more.
- MasterCard Decision Intelligence employs artificial intelligence to boost the validity of real-time approvals of MasterCard transactions and reduce false declines. To utilize this offering, a merchant should only accept MasterCard.
- Fraugster, a startup, has developed a self-learning fraud detection engine. This technology includes APIs that collect customer information points — like a client’s profile and transaction patterns — and unites those points with information from other sources. All this data is then examined in real time to return a fraud score in less than 15 milliseconds.
- Feedzai is just another startup which detects and prevents fraud in real time by processing data from other sources. It provides capabilities beyond fraud direction by also helping merchants detect policy violations — such as employees not complying with corporate policies — and preventing blacklisted users from transacting on the website. Feedzai can be deployed in house, versus the cloud, depending on the tastes of the merchant.
- Riskified offers end-to-end fraud detection for ecommerce merchants. It utilizes machine-learning models to protect against fraud and prevent costly chargebacks. Multiple international brands use this comprehensive solution.
- Signifyd is a favorite fraud platform that provides a 100 percent guarantee against fraud. It uses machine learning and works with major trade platforms, such as Shopify, Magento, Demandware, and BigCommerce. Signifyd claims over 5,000 websites use its services.
- Unfraud is a startup that provides an artificially intelligent fraud solution to the Shopify platform together with the important features of self-learning and real time detection. Merchants not on the Shopify platform may still use Unfraud through its APIs.
How to Select
To select the ideal solution for your company, consider the following aspects.
- Ease of integration with your commerce platform.
- Employs the fraud tips for your small business and is optimizing and learning continuously.
- Quick fraud detection, ideally under 100 milliseconds.
- Extensive analytics.
- Works in most of the areas where your organization operates.
- Complies with local laws and regulations.
- Handles peak loads and scales with your business.
- Always available.
- Highly secure.
Does your company use an artificially-intelligent fraud detection platform? Please share your experiences from the comments, below.