Site icon Steven Astorino

Helping to Combat Fraud with AI-based Safer Payments

Buying online has become the norm for many people these days. Like many people, I’m focused on the buying experience and sometimes take for granted that my transactions will be secure and safe.  But behind the calmness of the online-store interface, organizations, particularly banks, face a constant threat of fraud – both internal and external – a threat that is becoming ever more complex and sophisticated. With the continued rise in the volume of online transactions, fraud detection and prevention solutions are needed to help identify buyer-interest and pattern recognition that can adapt quickly to new patterns. 

IBM Safer Payments provides machine learning and model building tools for fraud management teams and is designed to help them respond fast to new fraud vectors without having to depend on data science teams. Using a cognitive computing approach, IBM Safer Payments profiles the behavior of customer segments delivering best-fit analytics interactively to fraud professionals to help profile and monitor payments to meet the service levels needed by the business.

The solution is designed to allow fraud prevention professionals to build, test, simulate, validate, and deploy machine learning models in a matter of days without interrupting existing monitoring. It is also engineered to provide scoring models that are trained externally to be transferred to IBM Safer Payments using Predictive Model Markup Language (PMML) – an open industry standard to exchange scoring models.

New payment schemes are competing for users with ease of use and therefore cannot afford high false-positives incidents that cause friction with users’ experience.”

Steven Scheurmann, RegTech Solutions leader for Asia-Pacific at IBM.

IBM Safer Payments is integrated with IBM Watson Studio – designed to accelerate AI implementations through a suite of tools and a collaborative environment for data scientists, developers, and domain experts – and can be deployed on site or on private or public clouds. 

IBM Safer Payments has been helped an organization save millions of dollars a year when it comes to monitoring and preventing fraud. More use cases are available in these IBM Safer Payments case studies

In 2019,  IBM was awarded “Financial Crime Product of the Year” for IBM Safer Payments as well as “Best Vendor for Innovation.” And in 2020, a challenging year for many reasons, IBM again, won “Fraud detection and prevention product of the year”, this time at the Asia Risk Technology Awards 2020 as detailed here.

I applaud and congratulate the IBM RegTech team for all their hard work which has led to this industry recognition and associated awards.

If safe payments is a subject area that interests you, more technical information on the architecture, technology and scaling behind IBM Safer Payments can be found here.

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