Nets, KPMG collaborate on post-3D Secure fraud prevention
Arguing more work is needed in the wake of new security protocols, Nets will team with KPMG to jointly develop machine learning-powered fraud monitoring and prevention.
The Nets Fraud Ensemble, which the Copenhagen-based Nets and KPMG have piloted internally, aims to tackle fraud that’s risen steeply in Europe in recent years, particularly in card-not-present transactions.
The solution will use AI to assist fraud prevention teams and deploy machine learning to identify emerging fraud trends, marking a departure from rules-based fraud-fighting tools currently in wide use in Europe.
“Although initiatives such as 3D Secure have done much to make it more secure for people to shop online across Europe, the industry still faces challenges,” said Sune Gabelgård, Nets’ head of digital fraud, intelligence and research, in a press release.
Nets has been using AI to fight fraud in various capacities for years, but the Nets-KPMG solution produces results in real time, using multiple models to analyze individual transactions in milliseconds, enabling instant blocking of suspicious purchases, the release said.
“The development of Fraud Ensemble and its state-of-the-art algorithms is the result of Nets’ and KPMG’s combined innovation capabilities, AI experience and fraud monitoring and prevention expertise,” said Bent Dalager, KPMG’s head of new tech and financial services for the Nordic region, in the release.
Mastercard last month agreed to buy the majority of Nets’ corporate services business, in a $3.2 billion deal that’s pending.