Blogs
on August 26, 2024
The trend of Abuse of Genuine fraud is noticeable despite advancements in mobile wallet payments. How do your AI-driven scoring systems combat this complex fraud type in the industry?
Our teams identify Abuse of Genuine fraud by using enhanced behavioural profiling across extended periods and utilising sector-specific data in full to enable us to create a detailed and accurate profile for both payment instruments and vehicles. Industry-specific data, for example, from fleet odometers, is exceptionally valuable when you are developing a behavioural profile for a specific vehicle. Combined with other methods, this enables us to quickly identify areas of increased spending or a change of spending profile. That insight is vital when identifying Abuse of genuine fraud, as this type of fraud is often perpetrated for long periods of time and in very high volumes.
Opportunistic fraud and overclaiming by legitimate customers can inflate fraudulent values. How can businesses enhance confidence in point-of-compromise identification and distinguish genuine customer behavior from fraudulent activity?
The short answer is that businesses need to ensure that they are working with experts who understand fraud and understand the impact that false positives can have on a fraud strategy. Incorrectly identified fraudulent transactions affect bottom-line losses and can severely harm a business fraud strategy and AI Scoring Systems.
As a result, we firmly hold that visualising precise trend profiles and pinpointing potential compromise points are as critical as receiving the initial fraud alert. By combining industry-specific data with payment and transaction information, we can often clearly identify deviations from legitimate activities through proper visualisation. This forensic approach enhances our ability to understand and act on fraudulent behaviour effectively.
Tokenization is being considered to fight fraud. How do you approach this technology, considering potential regulatory requirements, and what implications do you foresee for PSD3?
Tokenization combats payment fraud by replacing sensitive data with meaningless tokens during transactions. This protects actual card details and can also be applied to other sensitive data.
New European regulations (PSD3) emphasize security and user privacy, aligning well with tokenization’s benefits. PSD3 is expected to tighten security measures further and encourage anti-fraud technologies.
While tokenization enhances security, regulations like PSD3 may not definitively address liability for fraudulent token transactions. As tokenization becomes more widespread, clear guidelines for such cases will be essential.
There is no doubt that tokenization is a powerful tool against fraud, but balancing security, innovation, and user rights will be essential for any robust payment ecosystem to comply with PSD3.
To Know More, Read Full Interview @ https://ai-techpark.com/revolutionizing-fuel-mobility-payments/
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