Nets and KPMG explore the power of AI in fraud prevention

Nets and KPMG explore the power of AI in fraud prevention
23.04.2020 09:36 am

Nets and KPMG explore the power of AI in fraud prevention

Artificial Intelligence , Fraud Detection

Man and machine are the perfect pair when it comes to fighting payment fraud, according to a new whitepaper from European payments industry leader, Nets and multinational professional services provider, KPMG. Fighting Fraud with a Model of Models explains how utilising human expertise in combination with artificial intelligence (AI) and machine learning (ML) technologies can significantly increase the accuracy of fraud prevention services.

Fighting Fraud with a Model of Models explores the theoretical approach behind Nets Fraud Ensemble, an AI-powered anti-fraud engine developed in collaboration with KPMG, which can reduce fraudulent transactions by up to 40% on top of existing AI fraud prevention measures, for the benefits of banks, merchants and cardholders, as well as society in general.

Sune Gabelgård, Head of Digital Fraud, Intelligence & Research, Nets, comments: “It’s time for financial institutions to stop playing catch-up with fraudsters and, instead, get ahead of the curve. The business of fraud prevention has become increasingly convoluted, with the mass adoption of e-commerce, increases in cross-border payments, and the growing popularity of new digital payment methods all adding new layers of complexity. Humans cannot tackle these challenges alone. Until now, the use of true machine learning to fight payment card fraud has been limited. We need it now. There are patterns in the data which are hugely valuable in the fight against fraud, but that are too complex for the human brain to identify. Machine learning can not only find these, it can analyse and act on them too and prevent fraudulent transactions.”

Bent Dalager, Nordic Head of NewTech and Financial Services, KPMG, adds: “We have applied an innovative machine learning approach utilizing several machine models in unison. This approach has a clear advantage and generates the most accurate fraud screening. When applied, this next level of fraud monitoring and prevention means banks and merchants can take a big step forward. Not only does it combat crime, it also improves the customer experience and dramatically reduces financial losses.”

The ‘brain’ of Nets Fraud Ensemble consists of multiple models working together to analyse each individual transaction within ten milliseconds – the time frame in which a transaction can be safely blocked. The solution learns from the results of its analysis and adjusts accordingly, meaning the longer that it is operational the more fraudulent transactions are blocked, and the fewer false positives are granted.

Fighting Fraud with a Model of Models is available to download free of charge from the Nets website.

The European fraud landscape

Related News

Numerix Launches New Artificial Intelligence Solution to Address $200 Trillion of Financial Contracts Affected by the Global LIBOR Transition

Numerix, the leader in risk technology, has partnered with NextGen Strategic Advisors, an innovative Financial Institutions management consulting firm, to introduce Numerix... Read more »

Kooomo launches state-of-the-art AI Chatbot

Following the launch of its new Help Centre, digital eCommerce solutions specialist, ... Read more »

Sidetrade Joins the Ranks of Euronext’s Rising Tech Stars

Sidetrade (Euronext Growth: ALBFR.PA), the artificial intelligence platform dedicated to accelerating company revenue and cashflow, has earned the European Rising... Read more »

QuantaVerse offers AI-powered country code derivation to enable financial institutions to experience the potential of automated entity resolution

QuantaVerse, which uses AI and machine learning to automate financial crime investigation processes, is now offering the country code... Read more »

Ethically accelerating businesses with the use of Artificial Intelligence

Businesses have an opportunity to discover the opportunities and challenges as well as benefits of Artificial Intelligence in a free Immersive Tech Session on Monday 6th of... Read more »

FICO Awarded 13 New Patents for Responsible AI, Fraud and Decision Management

Silicon Valley analytic software firm FICO has been awarded 13 new patents related to fraud, artificial intelligence (AI) and decision management. In total, FICO currently... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel