Fraud Prevention

Kount Launches New AI Tool To Detect Fraud

Fraud Makes Headway Via ‘Payroll Diversion’

Digital fraud prevention company Kount has launched a new artificial intelligence (AI)-driven solution to enhance payments fraud prevention.

The company said this latest solution creates the closest simulation of the decision process of an experienced fraud analyst, but in a faster, more accurate and more scalable manner. Kount’s AI uses both supervised and unsupervised machine learning, along with additional calculations to deliver a near-human decisions so that companies can control revenue, fraud losses and operational costs.

Like an experienced fraud analyst, Kount’s AI uses historical fraud patterns via its universal data network that includes billions of transactions over 12 years and across 6,500 customers, in more than 180 countries and territories, and multiple payment networks.

In addition, the solution searches for anomalies using unsupervised machine learning that utilizes advanced algorithms and models to detect any issues in a faster and more accurate manner. Kount’s solution allows a fraud analyst to set policies based on a new score: Omniscore, which is twice as effective as existing models at detecting payments fraud.

“The supervised machine learning aspect of Omniscore reflects the historical experience that seasoned fraud analysts possess, while the unsupervised features simulate the instinct or ‘spidey sense’ of the very best analysts to detect that a new type of attack is underway,” said Tricia Phillips, Kount’s SVP of product and strategy, in a press release. “More than any other model we’ve seen, Omniscore truly behaves as a human would in the risk assessment of a payment transaction, which is the very definition of artificial intelligence.”

“The next generation of AI in fraud prevention is much more than machine learning — supervised or unsupervised. It is the ability to simulate, augment and scale the decision process of an experienced fraud analyst to greatly increase the accuracy and effectiveness of fraud prevention, and to deliver desired business outcomes,” said Steven D’Alfonso, research director with IDC Financial Insights. “The ability to quickly identify complex and emerging fraud patterns by Kount’s new AI solution, along with customizable controls for the business, will play an important role in allowing businesses to achieve their financial goals without sacrificing customer experience.”


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.