Galileo, a payments processor and program manager for prepaid, debit, credit and virtual transaction processing, today announced the release of its artificial intelligence capability for fraud, called Fraud AI.
Fraud AI strengthens Galileo's existing best-in-market fraud detection services by increasing fraud detection accuracy and precision, helping to push clients' fraud loss averages below one basis point and reduce false positives.
Built with technology developed in-house, Galileo's Fraud AI uses machine learning to detect previously undetectable fraud patterns. Fraud AI identifies and remembers developing fraud patterns and applies its learnings to block future transactions exhibiting those patterns. It continually self-improves its algorithms as it examines more data to ensure it gets "smarter" at detecting emerging fraud patterns.
Following the rollout of EMV cards, fraud detection platforms need to evolve to combat the rise of card-not-present fraud. Today, Galileo clients using its rules-based, customizable Dynamic Fraud Engine experience fraud losses, on average, of approximately one basis point. That's 80 percent lower than the industry average of five basis points, which could mean a difference of $400 per $1 million transaction value. Galileo's platform examines more than 500 data points per transaction, including the major credit card networks' fraud scores.
By adding Fraud AI as an additional data point, participating clients can potentially reduce fraud loss averages to less than one basis point. Fraud AI significantly increases fraud detection accuracy and confidence in actions taken, reducing fraud "false positives" to protect customers' user experiences.
"Fraud AI delivers payments' and fintechs' most accurate artificial intelligence for fraud," said Clay Wilkes, President and CEO of Galileo Processing. "It is the culmination of our 12-year, multi-million-dollar investment in data science and innovation to deliver the best tools to protect our clients' profitability."