Real-Time Fraud Risk Scoring and Transaction Blocking

Real-Time Fraud Risk Scoring and Transaction Blocking

Increase fraud investigation speeds and reduce false decline rates through precise scoring and blocking

How does INETCO Insight improve fraud risk scoring and transaction blocking?

Instead of spending hours sifting through thousands of false positives, INETCO Insight features state-of-the-art machine learning fraud detection and rules-based alerts for transaction fraud risk scoring. The platform is built to ingest transaction data in real-time, rebuild individual customer models on the fly, and assign risk advice for every transaction in milliseconds.

Real-time fraud risk scoring is a game-changing advancement from existing approaches that only rebuild customer models as part of a scheduled batch ETL (extract, transform and load) process. Legacy fraud prevention systems and most fraud investigation software often lack data on new customers and cannot accurately distinguish between legitimate consumers and fraudsters.

With INETCO Insight, customer activity is continuously assessed and compared against set rules and predisposed behavior. The fraud risk score and action are adjusted and assigned for every transaction in milliseconds. The result is a more precise fraud risk score for all types of card-present and card-not-present transactions, including:

  • ATM withdrawals
  • Cross-channel transactions
  • Mobile wallets and e-payments
  • Online purchases
  • In-store card payments, including contactless

How INETCO Insight improves fraud risk scoring and blocking precision

Continuous real-time transaction data feed to reduce fraud

Taking into consideration pre-defined behavior patterns such as card usage velocity, transaction amount thresholds and geolocation information, real-time transaction data is continuously fed into INETCO Insight’s rules-based alerts and adaptive machine learning engines. Individual customer models are rebuilt on the fly, extracting behavioral patterns from past card transactions that signal potential fraud.

Individual behavioral models for pattern recognition and fraud risk scoring

INETCO Insight applies a rules-based score and a machine learning score to each and every customer, card or device. Both are configurable. The machine learning score compares the current transaction values for assigned risk factors against historical values going back 5 years. As machine learning requires a number of customer transactions for precision on detection to increase, INETCO Insight also supplements machine learning with its real-time, rules-based alerts engine and transaction profiling analysis.

Automatic blocking of fraud transactions at the firewall port level

Over and above providing fraud risk scores to core banking systems, INETCO Insight also integrates with network and application layer firewalls. Automated action scripts can be triggered to surgically block suspicious transactions.

“When we approached our IT operations team and learned about the robust transaction data gathering capabilities of INETCO Insight, our fraud prevention team was very excited, especially about the fact this data came with a complete set of message fields. Our team now has the flexibility and visibility it needs to significantly speed up our ability to identify and respond to fraud attacks.”