It’s a fact: the pandemic brought consumers even closer to the digital world, emphasizing a trend that already came from pre-pandemic times.
At the same time, online commerce has soared. And with it, other problems also triggered, namely security ones.
There have never been so many identity thefts through stolen credit cards. In an increasingly “cashless” society, online card fraud has increased substantially, compared to fraud in physical stores.
E-commerce is the new El Dorado, the solid gold city the South American legend spoke of.
When a debit or credit card (or the data on those cards) is stolen, there are multiple victims involved, not just the usual card user.
The financial institution is alerted by suspicious movements, and has to act. If it does not detect the suspicious movements, it will have the customer at its heels, as they think the bank has done “something wrong”.
The store where the transactions with the stolen data were made is also called upon to give explanations, insofar as purchases were made attributed to a person who actually did not make them. The damages are replicated by several actors in which everyone ends up being affected.
The good news is that there are systems based on Data Analytics and Artificial Intelligence that are a precious help in these cases.
The bank currently has the technology and know-how to detect strange movements of credit cards, and notify the competent authorities and cardholders. There are algorithms that “learn” the behavior of the cards and signal if any deviant behavior arises.
That’s exactly what happened to an E-commerce company that turned to Intelligent Algorithms.
📌 Fake cardholders carried out fraudulent transactions on the site, which sometimes amounted to 20% of global transactions.
📌 Through the use of advanced Data Analytics techniques, it was possible to make correlations between data and fraudulent actions.
📌 A model capable of predicting fraud with an accuracy of 90% was created. Once a fraud was detected, the purchase was canceled and the credit card company notified. At the same time, there was a permanently updated “blacklist” of fraudulent cards.
📌 Fraudulent transactions dropped to 4% and continue to drop, as new categories of fraud are being detected by the predictive model, which incorporates them into its security portfolio.
This example is more common than thought and has devastating effects on the lives of people and companies.
Intelligent Algorithms provides top solutions in Data Analytics and Artificial Intelligence. We help companies provide comfort and security to their customers.
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