Jumio has launched 360° Fraud Analytics, its new fraud-fighting system that uses AI-driven predictive analytics to identify fraud patterns.
Unveiled at this year’s Money20/20 USA, Jumio 360° Fraud Analytics aims to look beyond simple linkages, such as flagging someone because they are connected to a known fraudster.
Instead, it analyses billions of data points across the company’s cross-industry network to identify patterns based on behavioural similarities and other indicators.
Using graph database technology with a layer of machine learning, the analytics system groups identity transactions into clusters across the network and determines the fraud risk of each cluster. This provides a multi-dimensional view of each transaction and the cross-customer ecosystem as a whole.
“Jumio revolutionised online identity verification when it pioneered the ID + selfie approach,” said Robert Prigge, CEO of Jumio.
“Today, we are pushing the industry to evolve once again by harnessing the power of predictive analytics to identify fraud patterns across our vast network. This will allow us to identify and stop fraud rings and other coordinated attacks with more accuracy than ever before.”
According to Jumio’s analysis, 25% of fraud is interconnected — either perpetrated by fraud rings or individuals using the same information or credentials to open new accounts on banking sites, ecommerce platforms, sharing economy sites and more.
With rapidly evolving AI at fraudsters’ disposal, they are becoming more sophisticated than ever before, leaving businesses scrambling to stay ahead.
Jumio 360° Fraud Analytics will aim to solve this through its own AI tech by identifying transactions that will be compared to the clusters and generate a predictive fraud score.
This, in turn, can be used to automatically reject the transaction if it exceeds a certain threshold. Jumio’s initial studies show that this approach improves its existing, highly accurate fraud detection rate by at least 30% — without increasing the false rejection rate.
Philipp Pointner, Jumio’s Chief of Digital Identity, added: “Because explainability is a key requirement when using automation, we provide insights on why the identity transaction was rejected.
“We also provide a graphical representation of the high-level linkages we found, which makes it easy to see connections between people, documents, devices and more. The combination of sophisticated analytics and easily consumable insights makes this new technology a game-changer for fighting fraud.”