Alliance & Leicester says it has saved millions of pounds of
potential losses from credit card frauds with the introduction of
an artificial intelligence-based detection system.
Proactive Risk Manager, Credit Edition, from ACI Worldwide, detects
fraud and identifies behaviour that could indicate an intent to
defraud. The system uses a combination of rules and the
pattern-matching and recognition capabilities of neural networks to
alert managers to suspicious activity.
Head of group fraud and corporate security for Alliance &
Leicester, Geoff Lloyd, said, "The ability to be able to analyse
and report on a full extract of our credit card transaction data
has been an advantage in identifying and targeting sophisticated
fraud."
Martin Hewgill, fraud specialist at ACI, said, "Neural networking
can use data collected on fraudulent dealings to strengthen the
system." But both men emphasised that these are only an aid to
human decision-making.