epay , a segment of Euronet Worldwide , has selected Fraugster , a payment intelligence company, to pilot artificial intelligence fraud prevention services. epay is a full-service payment provider and the digital payments processing business segment of the global financial technology solutions and payments provider Euronet Worldwide.

In 2021, epay’s worldwide transactions for payments and branded payment processing across all channels grew 30% to more than 3 billion. As the payment provider continues to expand its engagement in web-based and in-app channels, it needs to keep developing the overall ecosystem protection that minimises risk from the outset. Fraugster’s AI Anti-Fraud Engine can help epay gain insights into end-user behaviour for the offered payment methods, improving the payment security strategy.

It also aims to help epay more accurate approval decisions, whilst offering the flexibility needed to cater for different business models within the Euronet group. Because the demand for digital and branded payments is constantly increasing, these payment methods require ongoing development in fraud prevention within the risk system. In addition, ecommerce fraud losses are higher now than pre-pandemic levels, making payment security and intelligence even more important.

The risk of fraud associated with online payments methods The risk of fraud grew more and more to be associated with the online payment methods, especially as ecommerce accounted for almost 20% of global retail sales in 2021. Besides, the global loses ecommerce retailers suffered due to fraudulent activities was estimated to be USD 20 billion in the same year. Ecommerce fraud is rising as online sales grow and fraudsters are easily able to target merchants that are new or unfamiliar with ecommerce or lack the resources to provide advanced security measures.

Internet traffic surged about 60% and, as a result, money spent by online shoppers nearly doubled. The average value of attempted fraudulent purchases increased 69% year-over-year, according to a report from the digital fraud prevention company, Sift. Therefore, even though 87% of finance leaders believe their buyers are ready to transition to making payments digitally, payment fraud is ever evolving.

The role of artificial intelligence in improving fraud prevention Using artificial intelligence (AI) to detect fraud has helped businesses in improving internal security and simplifying corporate operations. AI can be used to analyse huge numbers of transactions in order to uncover fraud trends, which can subsequently be used to detect fraud in real-time. When fraud is suspected, AI models may be used to reject transactions altogether or flag them for further investigation, as well as rate the likelihood of fraud, allowing investigators to focus their efforts on the most promising instances.

The AI model can also offer cause codes for the transaction being flagged. These reason codes direct the investigator as to where they should seek to find the faults and aid to speed up the investigation. Automated behavioural analytics leveraging AI and clear messaging around security checks will be essential to conserve user experience and save customers from fraud, as Juniper Report shows.

To find out more about Fraugster, check their profile in our company database. .