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Featurespace and TSYS start using machine learning to reduce online fraud

Featurespace and TSYS have announced they will use a new machine learning system to reduce online fraud for transactions and improve the overall security.

Featurespace has created what it calls the ARICSM engine. It is a machine learning software platform which can monitor every individual customer. It can then make decisions based on that customer’s activity.

“TSYS’ collaboration with Featurespace aligns with our overall strategy of integrating with advanced, innovative technology partners to help our clients grow their business. They can also reduce costs, and deliver an exceptional customer experience,” said Andrew Mathieson, group executive, issuer product group, TSYS.

“We will incorporate these capabilities across the credit risk lifecycle, enabling our issuers to catch more fraudulent transaction. At the same time it will dramatically reduce false-positive alerts for genuine transactions. It’s a sharp contrast to the industry paradigm of blocking more valid transactions in order to detect actual fraudulent activity.”

TSYS is a US payment powerhouse. The company operates in more than 80 countries with local offices across the Americas, EMEA and Asia-Pacific. It develops and provides a full payment process. “Our industry is changing every day. We’re leading the way toward the payments of tomorrow”, the company says.

Featurespace on the other hand is based in Cambridge, UK. It is one of the leaders in Adaptive Behavioral Analytics. The goal of the ARICSM engine is to be a machine learning software platform which understands individual behaviors in real-time for decision making around fraud, risk and compliance. The company deployed its software or services to clients in 180 countries.

“We provide the ARIC Fraud Hub to organizations in banking, payments, and gaming to spot new fraud attacks as they occur. It reduces customer friction by reducing false fraud alerts. It also improves operational efficiencies in managing fraud, risk and compliance”, says the company.

“TSYS has a long-standing leadership position in authorization processing and fraud management and we are excited to integrate our ARIC engine for TSYS’ clients,” said Martina King, chief executive officer, Featurespace. “We are proud to be working with TSYS to deliver world-leading machine learning fraud protection and exceptional customer management to their clients.”

The news shows one more step in which intelligent systems and machine learning are starting to expand to. Machine learning is becoming an important part of more and more systems and it still has a long way to go. It is definitely an IT field to keep your eye on. Or even start a career as it will be a very dynamic and interesting segment for quite some time.

Image credit: Flickr (CC) / Will Speak