A new fraud detection technology using behavioral analytics to reduce the number of times debit and credit cards are being blocked by mistake, has claimed a 70 percent success rate during trials.
Featurespace, the UK company behind the fraud prevention software technology, claims it will be able to distinguish between genuine transactions of bank customers and card fraud attacks and benefit companies using it by tens of millions of pounds.
Martina King, CEO of Featurespace, says it to be a key part of fraud prevention in the financial market in the future.
“We offer clients a unique way to stop all types of fraud as the attack occurs, even new and unknown fraud types,” she said in a recent interview.
“We also enable more genuine transactions to be processed – in some cases, we have reduced genuine customer declines by 70 percent. The benefit to the business can be tens of millions of pounds, depending on transaction volume.
More importantly, the fraud prevention technology will help bank customer retention, she said: “Reduced customer friction keeps existing customers loyal and happy. Featurepace’s pioneering approach – adaptive behavioral analytics – focuses upon understanding each customer in real-time, detecting when behavior changes, and predicting what they are likely to do next. This enables us to have the most accurate solution available.
We believe that genuine consumers should not have to endure their transactions being blocked as an acceptable cost of protecting them from fraud. We all know how irritating it is to have our purchases blocked or rejected unnecessarily. Our system eliminates the need for these over-protective procedures.”
“Consumers benefit from an improved banking and shopping experience as well as cutting-edge fraud protection. It also means that consumers have the most advanced protection when fraudulent activity does occur. From historic and incoming data, we understand individual consumer behavior patterns.
“We can recognize when behavior on an account is abnormal and send a transaction for review before it is processed.”
This article was originally published in LP Magazine EU in 2015.