Leaders in payment technology Worldpay is set to release a new solution designed to prevent fraud and optimize approval rates potentially boosting revenue across all channels.
Dubbed FraudSight, the solution capitalises on machine learning and looks at billions of transactions before making a ‘transaction validity decision’ for merchants based on data points and strategies.
“Gaining a nuanced view of risk requires the use of predictive behavioral analytics driven by machine learning to scale mountains of transactions and data sources and make instant decisions,” said Rivka Gewirtz Little, research director of worldwide payment strategies at IDC.
“Fraudsters are more organized than ever—and often as digitally savvy as those they attack—so merchants should look to highly sophisticated tools if they hope to minimize losses.”
Card fraud losses reached $28.8 billion in 2018, according to The Nilson Report.
That sum is projected to reach $42.3 billion by 2026, with most loss stemming from CNP transactions, where the merchant often carries more liability.
Worldpay explain in the release that they believe traditional rules-based fraud tools are “ill-equipped” to keep up to date with the speed and sophistication of modern day attacks.
FraudSight uses advanced technology to assign contextual awareness to each transaction and is engineered to connect in-store plus online transactions, which it uses to build behavioral models from card-specific activity.
The system analyses behavioral and device biometrics, as well as contextual anomalies, chargeback reputation, and other factors that can help authenticate transactions.
“Managing fraud isn’t just about keeping out all of the bad transactions; you also have to ensure that the good transactions are still getting through,” commented Asif Ramji, chief product and marketing officer at Worldpay.
“FraudSight will leverage our unique combination of technology, data and people to help protect our merchants and their customers against the financial threat that fraud poses.”