FIS and Stratyfy Team to Combat Card Fraud

FIS joined forces with software firm Stratyfy to combat fraudulent card transactions.

The collaboration employs the FIS SecurLOCK card fraud management solution to spot and prevent fraudulent transactions, according to a Monday (March 18) press release.

“With sophisticated fraudsters using new technologies to increase fraud attacks, both businesses and consumers are facing more risk than ever before,” Eric Kraus, head of fraud services at FIS, said in the release. “This new collaboration is a continuation of a commitment to implement new technologies, helping businesses prevent fraudulent behavior to protect the consumers they serve.”

Via live customer testing, FIS estimated in the release that SecurLOCK delivered “significant improvement” in identifying and preventing fraud.

“Reducing this friction, consumers can be less adversely affected by fraud rules and the disruption of ‘false positives’ …,” the company said in the release.

Stratyfy is a graduate of FIS’ FinTech Accelerator program and offers an artificial intelligence-powered solution for financial institutions to make better financial decisions around credit risk, fraud and compliance, according to the release.

PYMNTS spoke earlier this month with Siddharth Vijayakrishnan, senior vice president of product and financial intelligence at FIS Platform and Enterprise Products, about the challenges that come with authentication.

Companies that interact digitally with customers need to add friction into the authentication process, but not so much friction that applications or sites are rendered unusable.

“What you want is a system that is designed to let in good actors as easily as possible, and that presents enough of a barrier to deter bad actors,” Vijayakrishnan told PYMNTS for the “What’s Next in Payments: Authentication: What’s New and What’s Next?” series.

Elsewhere in the fraud space, PYMNTS looked last week at the return of an old-school iteration of the crime: counterfeit cash.

“Counterfeit banknotes are making a comeback all over the world, exposing in-store merchants and restaurants to potential lost revenue,” the report said. “The issue exists despite the migration from cash to digital payments since the pandemic.”

It’s a problem being mitigated the same way many problems are being handled these days: via AI. For example, researchers in India are developing an AI that can tell the difference between real and counterfeit banknotes.