Fraud is a major concern in business, and Internet fraud is perhaps the most worrying. But what if we told you that artificial intelligence can prevent Internet fraud? Sounds too good to be true, we know, but there are quite a few ways in which machine learning and AI are being used to stop Internet fraudsters in their tracks.
The Internet is an incredible tool that allows us to stay in touch with friends from all over the world, watch unlimited cat videos, learn a new skill, and even shop from the comfort of our couch. However, it’s also a tool rife with dangers as hackers lurk in the depths of the Net, looking to snag private data details from online shoppers when they least expect it. Using your credit card details online, for example, can open you up to fraudsters, especially if you use public Wi-Fi hotspots. Many hackers set up fake hotspot connections in order to steal sensitive information, such as personal passwords and credit card details, when you attempt to purchase things online.
The use of artificial intelligence to protect online shoppers is becoming more widespread.
Here are some of the ways AI technology is helping to reduce Internet fraud
Payment Card Industry Data Security Standard
This security standard was put in place to ensure that organisations that process credit card information use and store the information correctly. AI is used to replace the card number with unique symbols to help prevent the information from being used by hackers if they get a hold of it, ultimately stopping them in their tracks and protecting the cardholder’s account from being purged.
Visa Transaction Control
This service allows cardholders to manage their payments effectively, enabling users to do everything from suspending overseas activity, halting specific payments, or even setting a spending limit for online transactions. This means that users are able to reduce the likelihood of fraud since they can directly control their transactions. The nifty AI element also enables users to give restricted card access to another trusted user, allowing them to make payments through a digital wallet without having access to the physical card or complete access to the account details.
3D Secure 2.0
This transaction authentication method allows for secure, real-time transactions between digital merchants and issuers. It cleverly protects you from fraud by analysing contextual data, which means that the AI involved is able to learn your behaviour as a user in order to determine if a transaction is fraudulent or not. For example, if a customer makes a purchase in London, and then the same card is used later to purchase something in China and then in New Zealand, the system recognises this as fraudulent activity since it does not correspond with the user’s regular behaviour of London only purchases. Additionally, by analysing contextual data, the system prompts users to verify their identity only during high-risk transactions instead of requiring a static password for every single transaction, thereby increasing the rate of commerce.
How can Blackhawk help?
Blackhawk is an expert in dealing with fraud, particularly when it’s affecting your business. Many businesses rely on daily online transactions in order to be successful, so the use of AI technology to help prevent online fraud can be especially beneficial. However, sometimes fraud strikes when you least expect it and you may need professional assistance to determine how the fraud occurred, who is responsible, and how to prevent it from happening again. This is where we come in. Blackhawk can give you the support and advice you need to continue trading as normal.
For more information on how Blackhawk’s financial fraud services can help you, call us today on 020 7788 8983.