Transaction fraud is complex, ranging from friendly fraud to merchant collusion. E-commerce sales have exploded in the past two years accompanied by increased fraud. Nilson predicts credit card fraud losses to reach $36.1 billion by 2023, and financial institutions are looking for more accurate and effective solutions. Today’s market-ready AI is revolutionizing fraud detection. While acquirers are embracing AI to prevent transaction fraud there’s still room for improvement. Models trained on robust global data sets prove to be more effective–increasing fraud detection 2-3x and approvals by as much as 7.4% above existing defenses. Merchant monitoring models are enabling fraud analysts to significantly reduce manual reviews and focus their investigation on the most risky cases.
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