Digital fraud prevention and specialist, OneSpan has announced the launch of its open API, cloud-based risk analytics solution aimed to help financial institutions improve their transaction authentication frameworks.
Updating the market, OneSpan state the ‘account takeover and new account fraud’ are the top two issues with regard to transactional fraud worldwide, whilst in the US alone, ID fraud accounted for $16.8 billion dollars in losses in 2017.
Aite Group’s Retail Banking and Payments Research Director, Julie Conroy spoke highly of the new solution.
She said: “Even as criminals’ attacks on digital channels continue to escalate, financial institutions are under intense competitive pressure to reduce fraud and meet strict regulatory compliance requirements while growing their business.
“Real-time fraud detection using advanced, machine learning-based risk analytics enables financial institutions to strengthen their security, lower fraud and achieve regulatory compliance.”
The AI system is designed to assess a range of variations with each transaction including device information, transaction data, and user behaviour to deliver an overall risk score of the given transaction.
Machine-based learning allows the system to constantly adapt to new fraudulent activities – a form of artificial intelligence.
“Wherever money and data flows, fraud will certainly follow,” said OneSpan CEO, Scott Clements.
“While stopping fraud has become increasingly challenging because today’s threats keep evolving, it’s critical for financial institutions to take proactive measures and a layered approach to security to monitor, detect and block fraudulent transactions from happening before they occur, ensuring the best possible experience for the user.”