Security & Fraud

First Data Launches AI Fraud Detection Tool

First Data, the global commerce-enabling technology company, announced Thursday (June 1)  the launch of Fraud Detect, a fraud solution for merchants around the world.

In a press release, First Data said Fraud Detect uses artificial intelligence and machine learning, fraud scoring, cybersecurity intelligence and information from the dark web to provide merchants with the capability to detect fraudulent in-store, at the pump, online, mobile and in-app transactions before they occur.

“With Fraud Detect, our clients have seen an unprecedented reduction in fraud risk while increasing payment acceptance and creating a better customer experience,” said Steve Petrevski, senior vice president for security and fraud solutions at First Data, in the press release. “First Data is giving clients an unparalleled line of defense across all commerce channels, allowing these businesses to enhance the way they interact with their own customers.”

According to First Data, using artificial intelligence, Fraud Detect analyzes vast data sets to identify fraud and potential chargebacks. In parallel, Fraud Detect incorporates data from the dark web, a collection of websites that exist on an encrypted network, to enhance the power of the solution with information that would otherwise only be viewed by cybersecurity experts. The company said that in a recent pilot, Fraud Detect identified and prevented fraud that was undetected by other solutions in the market. Overall, merchants in the pilot saw lower false-positive rates and an 80 percent improvement in identifying fraudulent transactions before they occurred. Fraud Detect also scored and assessed transactions in less than half a second. Fraud Detect is available for businesses of all sizes and is applicable to a wide variety of industries, including retailers, restaurants, petroleum companies and service providers.

“Merchants are expanding into new commerce channels, and they want technology solutions that protect their customers and reduce their exposure to false declines, chargebacks and fraud,” said Julie Conroy, research director at Aite Group, in the same news release. “The technologies behind Fraud Detect and First Data’s ability to identify fraudulent transactions in real time will provide significant value to businesses around the world.”

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