Retail technology company Diebold Nixdorf has joined forces with financial crime prevention firm Featurespace to integrate Featurespace’s fraud prevention tech into Diebold Nixdorf’s Vynamic Payments platform.
“By partnering with Featurespace, Diebold Nixdorf can provide financial institutions a fully integrated payments solution with proven real-time fraud detection and prevention capabilities without the concern of managing multiple vendors,” the companies said in a Friday (Oct. 21) news release.
According to the release, Featurespace’s real-time machine learning leverages “only the necessary data from the authorization stream to deliver improved results without latency, or large data integration projects and workloads.”
The company’s Risk Hub will help Diebold Nixdorf “achieve the lowest false positive ratios alongside industry-leading fraud catch rates,” thus lowering the total cost of fraud for banks. The platform uses adaptive behavioral analytics and automated deep behavioral networks to automatically sniff out and prevent “even the most sophisticated types of fraud and financial crime,” the release said.
Speaking to PYMNTS in August, Featurespace Account Director Roger Lester spoke about using behavioral analytics by setting a baseline of normal customer behavior and then keeping an eye out for deviations.
“What we found to be the most effective is to profile and monitor good behavior,” Lester said. “The reason we’ve taken that approach is that if you’re monitoring or building your model [based on] confirmed fraud, you’re reacting only when a problem has occurred or happened. Because we focus on good behavior, we can act when we see a change in that pattern.”
Featurespace’s data science team has been refining models of consumer behavior, determining which behaviors indicate that a consumer feels confused about unfamiliar user interfaces.
“An example would be, let’s say, an elderly or young person who’s not familiar with the type of transactions you are asking them to do,” Lester told PYMNTS. “You may see a hesitancy with which they’re navigating around their account.”