Bigger Banks Using Fraud Detection; Kount Attracts Investment
Financial institutions with over $100 billion in assets are the most likely to have adopted AI and of those, 73% are currently using AI for payment fraud detection, according to a recent survey, AI Innovation Playbook, published by PYMNTS and reported in Forbes. The study was based on interviews with 200 financial executives from commercial banks, community banks and credit unions across the US.
Fraud detection has proved an attractive target market for startups, such as Kount, which launched in Boise, Idaho in 2007. Today the company holds 29 patents and has been funded with an $80 million investment from CVC Capital Partners in 2016.
Kount’s Identity Trust Global Network delivers real-time fraud prevention, account protection, and enables personalized customer experiences to more than 6,500 leading brands and payment providers.
The closing of many businesses during the coronavirus lockdown has led to soaring e-commerce volume, which has presented opportunities for fraud detection players. Kount founder and CEO Brad Wiskerchen recently wrote in PYMNTS.
“As the pandemic accelerated in March and April, we saw digital transaction volumes skyrocket for many industries, like vitamins, wellness, electronics, pet supplies and others,” he stated. “In April, purchase volumes for crafts and online wine were up more than 600% from the average February week. Handling that volume while maintaining exceptional customer experiences and preventing fraud requires an adaptable solution that can make accurate decisions in real time.”
The increased e-commerce means sees more businesses offering new digital experiences, including memberships, accounts and loyalty points. “Each represents a unique area of the customer experience that should be protected,” states Wiskirchen.