Financial institutions are using AI to mitigate fraud as fraudsters keep pace with evolving technology. 

Seventy-four of the top banks in the United States are looking to Brighterion’s Transaction Fraud Monitoring solution, owned by Mastercard, to flag transaction fraud, Amyn Dhala, chief product officer at Brighterion, said last week during a webinar presented by Fintech Nexus, “Advancing transaction fraud detection with global payment intelligence.” 

AI-driven Transaction Fraud Monitoring uses machine learning and data insights to score the likelihood of fraud within digital transactions, Dhala said. In fact, the solution helps financial institutions detect 27% of incremental fraud and can be integrated into a financial institution within six to eight weeks.  

Brighterion FI clients include parent company Mastercard and card giant Visa, Dhala said.

The solution helps FIs address the following pain points while managing fraud: 

• Keep with the changing fraud landscape; 
• Protect brand perception and enhance consumer trust; 
• Monitor emerging regulations; and  
• Balance user experience and security.  

E-commerce fraud

Similar to financial institutions, e-commerce merchants are focused on reducing fraud losses, according to Datos Insights’ third quarter survey of 200 midsize to large e-commerce merchants.  

Most important to merchants is “minimizing false declines, minimizing user friction, maximizing sales [and] striking that optimal balance,” Julie Conroy, chief insights officer at Datos Insights, said during the webinar.  

The combined effort of reducing friction and prioritizing fraud efforts “Really speaks to the importance of deploying controls that can help you walk that tightrope between customer experience and effective fraud prevention” throughout an e-commerce merchant’s operations or a financial institution, Conroy said. 

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