Problem
Within the payment ecosystem growing trends will increasingly affect consumers from a security standpoint. Think back to late last year when almost 40 million credit cards were hacked during Target’s security breach, meaning millions of pieces of private information were accessed and compromised. For customers affected by these incidents or fraudulence on an individual basis, banks do not always take full liability for charges. According to regulations, liability depends on how quick you are to report unauthorized charges. If a customer fails to detect fraudulent charges altogether, they risk losing money entirely.
And with customers’ extended presence across multiple platforms including E commerce, ATM withdrawals or various POS (point of sale), the opportunities for fraud are significantly more. For example, purchase on mobile devices increased to 29% of all online purchases from last year (source). ApplePay signals a major streamlining in user payment, making payment easy and invisible, and yet more susceptible to security breaches and detection failure.
Taken together, these trends necessitate an accurate and unobtrusive solution to protect customers against fraudulence.
The FeedZai Solution
Feedzai monitors payment processing and credit card transactions from the time you swipe your credit card until it is authorized or declined by the bank. The meaning of real-time takes on an enhanced importance for Feedzai, as this timeframe is a 20 millisecond window. In this short moment, the solution compares a customer’s current transaction to their complete transaction history spanning three years back to determine if it reflects consistent purchasing behavior.
Feedzai’s Predictive analytics brings fraud detection into the 21st century.
In addition to the three year’s worth of transaction history, baseline profiles are updated with each new payment made by a customer. This improvement means less false positives, or number or times a customer is alerted due to detection when in fact there is no actual fraud risk. Feedzai’s competitive edge is that it uses automatically updated profiles to ensure a transaction belongs to a customer with 80 percent certainty. If a real threat is posed, set threshholds alert customers and allow them to either “block” or “approve with review” a flagged payment.
Watch
CEO Nuno Sebastiao talks about the importance of SAP HANA in the Feedzai solution.