<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

The e-commerce  technology  trends that will  shape 2019

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

Why low‑tech fraud Is still a problem in the digital age

Why low‑tech fraud Is still a problem in the digital age

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...

Why is the auto parts industry an increasingly target for CNP fraud?

Why is the auto parts industry an increasingly target for CNP fraud?

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...

AI Won't Run the Business World: Why We Still Need Human Intelligence

AI Won't Run the Business World: Why We Still Need Human Intelligence

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...

ClearSale partnered with Business.com to show you 4 ways to protect yourself from fraud

ClearSale partnered with Business.com to show you 4 ways to protect yourself from fraud

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...

Deliver outstanding Black Friday/Cyber Monday customer service

Deliver outstanding Black Friday/Cyber Monday customer service

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...

How Ready Is Your Mobile Channel for the 2018 Holiday  Season?

How Ready Is Your Mobile Channel for the 2018 Holiday  Season?

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...