AI-driven fraud prevention solution delivers 4 key benefits
Artificial intelligence (AI) is essential for successful payments fraud prevention strategies. Fraud threats are evolving and presenting themselves in unexpected ways to businesses that accept digital payments. They need an advanced solution to stay ahead of fraud and reduce revenue losses to fraudulent transactions while maintaining a smooth customer experience.
Businesses that make digital sales are often vulnerable to fraud that impacts their payments ecosystems. Fraud is becoming more complex and relies on machine learning to execute fraudulent activities and bypass security solutions. Outdated fraud detection systems that only employ rules-based detection and basic supervised machine learning are not advanced enough to meet current fraud attempts. That’s where AI comes in.
How AI aligns risk management and business objectives
Kount’s AI detects nuances associated with complex digital fraud prevention schemes while ensuring customers have a smooth, safe, and fast checkout experience. Overall, AI-driven fraud detection delivers four key benefits:
1. It detects emerging fraud to uncover anomalies and patterns quickly and more accurately
Unlike some fraud prevention solutions that only offer machine learning and don’t take business policies into account, Kount’s AI weighs the risk of fraud against the value of the customer. And it provides an evaluation in the form of a score that helps businesses identify good customers and bad actors.
2. It increases sales and revenue by helping businesses accept more good orders
Businesses can rely on Kount’s predictive transaction score — Omniscore — for decisioning orders, reducing manual reviews and reactive fraud rules. The result is fewer false positives and negatives and more good transactions that generate revenue. AI makes it possible to detect fraud attacks in real time versus waiting six or eight weeks for chargebacks to hit the books.
3. It lowers fraud operations costs by reducing chargeback and manual review rates
When businesses don’t have to conduct hundreds or thousands of manual reviews, they have more time to focus on strategic business objectives. For example, without the weight of managing manual reviews and chargebacks, fraud analysts can make recommendations on how to manage risks associated with new products and expanded offerings.
4. It controls business outcomes through customizable, goal-based risk thresholds
With enhanced flexibility, businesses can determine and adjust their risk tolerance to meet product or campaign promotion performance goals. Businesses also gain the data they need to understand who is purchasing their products and when. These insights yield business intelligence that can inform future strategies.
AI-driven fraud prevention emulates an experienced fraud analyst, allowing fraud prevention teams to focus in on key business strategies. This advanced solution stays ahead of emerging fraud trends while empowering businesses to control outcomes, lower manual review rates, reduce chargebacks, and increase order acceptance rates.
About the author
For more than a decade, Rich Stuppy has developed fraud mitigation, compliance, and big-data strategies. As Kount’s Chief Customer Experience Officer, Rich is responsible for client success and ensuring Kount customers have the best experience.