North American Bancard Holdings in Troy, a payment technology company, and Feedzai in California, a company specializing in the use of artificial intelligence for task management across commerce, Monday announced the launch of a fraud solution that leverages machine learning to offer risk management and fraud protection for merchants.
The partnership has created fraud prevention tools that will address existing fraud and adapt to new types of fraud by using real-time insights to detect fraud patterns and transaction anomalies.
“Facilitating safe, secure, and fast transactions while eliminating friction in the underwriting and risk processes through technological advancements is at the core of what we’re trying to offer to merchants,” says Jay Nadarajah, chief risk officer at North American Bancard. “These technological advancements drive efficiencies and speed in identifying fraudulent activity.”
Demand for technology-based solutions has increased, and nearly three-quarters of businesses cited fraud as a growing concern over the past year. About 63 percent report the same or higher levels of fraudulent losses during the same period as compared to the prior 12-month period, according to the 2018 Experian Global Fraud and Identity Report, which the companies cited.
“Digital transformation across industries has been great for consumers, but also for increasingly sophisticated fraudsters looking for new ways to commit fraud,” says Saurabh Bajaj, head of project for Feedzai. “That’s why we need a real-time AI engine that can secure transactions using intelligence across all business channels. That’s how we secure transactions while also evolving to meet new challenges while growing alongside these businesses.”