Fraud happens every day whether we notice it or not. Merchants may not even be aware that fraud is occurring at their store, and yet it can still happen. Preventing that fraud from happening is important to maintaining business revenue through customer trust and brand security.
And yet, in most cases, the merchant would not be responsible for the fraud. The insurance company would foot the bill if the stolen item or money could not be recovered. Therefore, it is even more important for financial services companies to prevent fraud.
What are some of the current pain points the financial services industry faces that are susceptible to fraud?
In fact, fraud attempts are on the rise.
“When analyzing transactions originating from the US, the rate of suspected digital fraud attempts* against financial services companies increased 109% when comparing the last four months of 2020 (Sept. 1–Dec. 31) and the first four months of 2021 (Jan. 1–May 1). Globally, the percentage of suspected financial services digital fraud attempts increased 149%.”
So, what is the best approach to balance fraud risk management while maintaining a great customer experience? Through the accurate predictions and recommendations of machine learning.
Machine learning can help to identify:
Machine learning is not a fortune teller with a crystal ball. Rather, it uses real data to find past fraud and the likeliness of future fraud to occur.
Here are some real-world use cases that ElectrifAi’s pre-built machine learning model, Point-of-Compromise, has proven to be effective:
Machine learning is a complex technology that requires experienced data scientists who can create solutions to solve real business problems.
For example, these are some technical highlights of the Point-of-Compromise Model:
And a few data sources and features used to train the model:
Machine learning can be complicated and requires experienced data scientists to help you proceed. There are one of two ways to achieve the benefits of machine learning for your company:
Starting your own data science team is expensive and time-consuming. It requires:
Partnering with a firm that has pre-built machine learning models used in the real world, however, can save you a lot of time and money. Founded in 2004, ElectrifAi can provide:
Our mission is to help organizations change the way they work through machine learning. We have a commitment to make artificial intelligence and machine learning more understandable, practical, and profitable for businesses worldwide.
Now is the time to put your data to work to prevent fraud. If you’d like to learn more, contact us for a custom demo!
 Transunion. (2021, June 3). Rate of Suspected Financial Services Digital Fraud Attempts Rise Nearly 150% Worldwide as Digital Transactions Increase. https://www.transunion.com/blog/global-fraud-trends-Q2-2021?utm_campaign=q2-quarterly-fraud-report&utm_content=blog&utm_medium=press-release&utm_source=press-release&utmsource=press-release.