IBM says its acquisition of IRIS Analytics, a privately held company specializing in real-time analytics, will enhance its capacity to detect payment fraud.
As the payments industry continues to evolve with faster, alternative and mobile payments innovations and the expanding use of chip and PIN, fraudsters have become more technologically sophisticated and organised, adapting their fraud techniques more quickly, IBM says.
The financial terms of the deal were not disclosed.
[blockquote right=”pull-right” cite=”IBM”]Acting as a “virtual analyst” to help identify new fraud patterns, IRIS applies machine learning models to help analysts detect fraud and act quickly to help reduce fraudulent events.[/blockquote]
The tech giant reckons that with the purchase, it can leverage IRIS, which offers a real-time fraud analytics engine that leverages machine learning to generate rapid anti-fraud models while also supporting the creation and modification of ad-hoc models, proven successful on various sized payment platforms.
Acting as a “virtual analyst” to help identify new fraud patterns, IRIS applies machine learning models to help analysts detect fraud and act quickly to help reduce fraudulent events, IBM says.
“The cognitive computing approach unleashes a new paradigm in fighting fraud,” Alistair Rennie, General Manager, Industry Solutions, IBM.
“By integrating IRIS Analytics with IBM’s counter fraud technology, we will help organizations more accurately detect fraud at scale and speed so that they are in a position to implement countermeasures quickly, with more control and transparency, while at the same time assists with dramatically lowering false positives.”
“Defenses against financial crime are in critical need of innovation and improvement. As the payments industry evolves with new payments methods such as chip and PIN, mobile payments and immediate payments, the ability for financial institutions to accurately make decisions about what is suspicious and what is legitimate before the payment is executed is required,” Constantin von Altrock, Chief Executive Officer of IRIS Analytics adds.
According to Altrock, “the combination of IRIS technology with IBM’s Counter Fraud capabilities creates a comprehensive solution for real time payment fraud prevention.”
There's joy in sharing