Artificial Intelligence Fraud Solutions
Understanding fraud risk in the payment ecosystem
Global Card not Present (CNP) fraud is 8x higher than at point of sale1.
With the surge in e-commerce transactions, fraudsters are refining their strategies. Transaction fraud presents a significant hurdle for acquirers, payment service providers, and payment facilitators affecting merchants, and customers. The incorporation of technologies such as artificial intelligence (AI) and Machine Learning (ML) enhances fraud detection capabilities.
Acquirers can enhance real-time fraud detection by evaluating and comprehending merchant and payment risks, monitoring transaction fraud, and leveraging AI and Machine Learning fraud detection software. Additionally, incorporating merchant risk scores helps protect the entire merchant ecosystem and can also enhance risk management initiatives.
How AI and Machine Learning are used in fraud detection
AI payment fraud solutions are securing billions of transactions monthly and are utilized by many of the world’s leading financial institutions.
AI, coupled with Machine Learning, provides real-time intelligence, creating a powerful risk identification tool to better help reduce fraud, decrease chargebacks and approve more legitimate transactions.
| Without AI Fraud Technology | With AI Fraud Technology |
|---|---|
| Increase in chargebacks | Reduce fraud and approve more legitimate transactions |
| Block legitimate transactions | Better insight into a merchant’s customers |
| Lose merchant and consumer trust | Real-time analysis to prevent fraudulent behaviour and improve consumer experience |
| Reduce revenue working with poor fraud management | Expand sales and boost the retention of customers |
| Leave merchants vulnerable against attacks | Reduce false positives leading to increased revenue |
Partnering on AI fraud solutions with Brighterion, a Mastercard company
Powered by Brighterion, a Mastercard company we have launched our gateway-agnostic, anti-fraud integrations – Transaction Risk Management and Merchant Monitoring solutions. These services leverage Brighterion’s AI and Machine Learning to provide real-time analysis and enable acquirers to use advanced technology to better help protect themselves and merchants from fraud.
Evaluate Merchant Risk with Merchant Monitoring powered by Brighterion
The Merchant Monitoring solution is an AI-driven platform that can help acquirers detect patterns and anomalies that could indicate potentially fraudulent activity by merchants. It can also help acquirers to meet compliance requirements by regularly monitoring and verifying the transaction activity of each merchant.
Combined with rules and case management focused on detecting fraudulent merchants, acquirers can effectively monitor growing payment channels and transactions volumes.
Prevent and detect fraudulent transactions with Transaction Risk Management powered by Brighterion
Leverage the power of AI to combat fraud
Transaction Risk Management enables acquirers to protect themselves and merchants from fraudulent behaviour across various areas, factors, and frameworks. This AI-driven platform allows acquirers to evaluate each payment transaction and leverages acquirer-level or merchant-specific rules to prevent fraudulent behaviors.
Reduce fraud and approve more legitimate transactions
Powered by Brighterion, every transaction undergoes real-time analysis, through AI modelling and rules predefined by the customer, using short and long-term variables to isolate patterns and spending trends. This approach aims to minimize fraud while approving a higher number of genuine transactions.
Artificial intelligence (AI) model and Rules Management make up Transaction Risk Management scoring framework
Model checks against multiple transaction indices and compares them to patterns identified in historical data that is correlated with fraudulent use.
The system checks against rules set by the customer within the Rules Management tool.
There are two kinds of rules: Action and Score.
- Score rules aggregate in the final score of the transaction
- Action rules have direct outcome either accept or reject
Action rules prevail over the Score rules.
Each system generates:
- their own score
- an accept/reject recommendation
- reason codes and their details
Data from both Transaction Risk Management systems may be included in the output that is sent to the gateway.
Significant challenges in protecting against fraud and preventing false declines
Emerging fraud patterns require a more sophisticated approach to protect against fraud and to prevent false declines.
As such, the tools and solutions to combat fraud must allow fraud to be captured in real time to mitigate risk much earlier during the monitoring process.
The Gateway offers security solutions to adopt a more powerful approach
Our AI-powered solutions secure billions of transactions monthly and are used and trusted by many of the world's leading organizations and governments.
The Gateway offers security Transaction Risk Management
A scheme-agnostic, real-time solution that enables merchants to detect and protect themselves from fraud
also offered as a standalone service
Key Feature Components
Key Benefits
Merchant:- Leverages AI technology to reduce false positives
- Optimizes transaction approval rates and fraud losses
- Promotes a more positive consumer experience during checkout and improves customer satisfaction
- Reduces cart abandonment
- Drives sales revenue
Transaction Risk Management
Transaction Risk Management optimizes fraud detection and customer experience. AI and machine learning provide real-time intelligence, creating a powerful risk identification tool to better help reduce fraud, decrease chargebacks and approve more legitimate transactions.
Benefits