A cloud-based fraud solution powered by machine learning has been launched by global information services company Experian, following a trial in Germany.
Aidrian, the new AI fraud prevention solution, aims to tackle online fraud without negatively impacting the customer experience.
Experian’s launch comes after its own research identified fraud as the top priority for 73% of business respondents.
However, Experian’s research found that in trying to combat fraudulent transactions, businesses reported instances where legitimate customers are rejected in error due to “outdated or underperforming fraud rules”.
The cost of false positives can often amount to more than the value of fraud losses, the research revealed, as well as causing damage to brand reputation.
“Fifty-seven percent of the business leaders we surveyed find it challenging to strike the right balance between growing revenue and reducing fraud losses,” said Malin Holmberg, chief executive officer, EMEA and APAC at Experian.
“To combat increasingly sophisticated fraud threats, many firms are looking to utilise AI, and in particular Machine Learning technology, to improve the accuracy of their fraud decisions whilst providing a seamless customer experience.”
By combining a “state-of-the-art customised Machine Learning model” with device fingerprinting, Aidrian can automatically classify transactions with 99.9% accuracy.
“The high level of accuracy delivered by Aidrian helps businesses to prevent fraud, while providing genuine customers with a smooth and frictionless checkout or onboarding process,” added Holmberg.
“Globally, our customers have been looking for a way to balance revenue growth with fraud prevention, and, having developed and successfully trialled Aidrian in Germany over the past year, we are very excited to offer this solution in other markets.”
Experian revealed, last month, it is piloting a new Open Banking-powered service designed to enable those who are financially excluded get better access to mainstream financial services, by helping build their credit file in only three months, for free.