Criminals have never had so many ways to trick people.
This is being accelerated by the spread of technology, from instant messaging to new forms of money transfer such as P2P and real-time payments.
That’s why Compliance Advantage, a leader in financial crime intelligence, today announced the launch of Fraud Detection, a new solution that uses machine learning algorithms to detect and prevent transaction-related fraud threats.
“Scammers are quick and creative, constantly looking for new vulnerabilities to exploit. billions of dollars in lost revenue,” said Oliver Furniss, chief product officer at ComplyAdvantage.
“Banks and other financial institutions are constantly catching up. Fraud detection monitors the millions of transactions they process every day, offering new and effective ways to stop criminal activity on the fly.” .”
Catch all major payment fraud scenarios
Fraud Detection identifies over 50 of the most prevalent payment fraud scenarios faced by banks and other financial institutions across the millions of transactions they process every day. The product detects and flags fraud typologies such as Account Takeover (ATO), Authorized Push Payment Fraud (APP), Synthetic Identity, and Relationship Fraud.
Fraud detection advanced capabilities can also identify “unknown unknowns,” such as fraud typologies that do not match current rule-based scenarios.
When businesses are alerted to suspicious activity, full explanations are provided, streamlining transaction resolution. For example, the transaction may have been flagged because of a failed password attempt or because it was in a time zone that did not match the customer’s location.
This feature makes ComplyAdvantage’s fraud detection stand out in the market.
Holvi, a digital banking service for small businesses, uses fraud detection as part of ComplyAdvantage’s holistic approach to financial crime risk detection.
Valentina Butera, Head of AML and AFC Operations at Holvi, said: “The convenience of digital banking benefits both customers and criminals. Technology is evolving rapidly, but so are fraudsters. That’s why choosing ComplyAdvantage’s Fraud Detection was a very easy decision for us, we immediately saw that it had the latest machine learning technology on board and found the implementation to be very smooth.”
Using AI and Machine Learning to Fight Crime
Fraud detection uses AI and machine learning algorithms to monitor financial and non-financial events, looking for patterns that indicate potential risk. This includes identity clustering, which uses behavioral and personal characteristics to identify, for example, accounts controlled by a single individual.
It also means that financial and non-financial events can be combined with natural language processing and machine learning to identify suspicious transactions in real time using factors such as location and time.
“Integrity is key to a functioning and successful financial system. Financial institutions need to know that the transactions they facilitate are legal,” Furnis continued. “Our fraud detection solutions help payment providers, banks and other institutions provide a strong first line of defense, protect their customers and reduce the stress and losses caused by criminals.”
