<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=559746057746957&amp;ev=PageView&amp;noscript=1">

Machine-learning is all the rage in fraud detection, with industry analysts, academics, businesses and technology media examining the advantages of algorithms and big data in the fight against e-commerce fraud. Especially for fraud analysts working in companies with small budgets , machine-learning tools are seen as a cost-effective way to tighten fraud controls while maintaining fast decision times, as Forrester noted in its 2015 cross-channel fraud report. There’s no question that machine-learning tools can be an effective component of fraud reduction program, but relying on them to save staffing costs may not be cost-effective in the long run.

Rafael Lourenco

By By Rafael Lourenco

Understanding the e-commerce Payment Chain

Machine Learning and fraud: why artificial intelligence isn’t enough


Machine Learning and fraud: why artificial intelligence isn’t enough

That’s because while machine learning is an invaluable tool in the fight against fraud, it relies on human input and insight to create a comprehensive solution that yields the best results.

OVERRELIANCE ON AUTOMATED SCREENING LEADS TO MORE FALSE DECLINES

Algorithms are useful for identifying potential fraud quickly, but due to variability in consumer behavior – such as making online purchases while traveling abroad — some transactions will be falsely flagged for decline. The costs associated with false declines are too high to ignore. US merchants lose much more money on false declines than on confirmed fraud — $118 billion in false declines, compared to $9 billion in actual fraud, according to MasterCard and Javelin research.

Click here to read the full article.

Download Credit Card Fraud eBook

You may also like

What you need to know before outsourcing your holiday fraud screening

What you need to know before outsourcing your holiday fraud screening

Machine-learning is all the rage in fraud detection, with industry analysts, academics, businesses and technology media examining the advantages of algorithms and big data in the fight against...

Is a CNP Fraud Chargeback Guarantee the Best Choice for Your Online Store?

Is a CNP Fraud Chargeback Guarantee the Best Choice for Your Online Store?

Machine-learning is all the rage in fraud detection, with industry analysts, academics, businesses and technology media examining the advantages of algorithms and big data in the fight against...

In the new ecommerce fraud landscape, every vertical is now at risk

In the new ecommerce fraud landscape, every vertical is now at risk

Machine-learning is all the rage in fraud detection, with industry analysts, academics, businesses and technology media examining the advantages of algorithms and big data in the fight against...

Digital booking trend for travel attractions and fraud prevention

Digital booking trend for travel attractions and fraud prevention

Machine-learning is all the rage in fraud detection, with industry analysts, academics, businesses and technology media examining the advantages of algorithms and big data in the fight against...

The Future of Mobile Fraud Prevention

The Future of Mobile Fraud Prevention

Machine-learning is all the rage in fraud detection, with industry analysts, academics, businesses and technology media examining the advantages of algorithms and big data in the fight against...

Social vs. Financial: What You Need to Know About the Real Value of a Business

Social vs. Financial: What You Need to Know About the Real Value of a Business

Machine-learning is all the rage in fraud detection, with industry analysts, academics, businesses and technology media examining the advantages of algorithms and big data in the fight against...