TSYS, Featurespace Team to Battle Fraud with Machine Learning
Total System Services Inc. has announced an agreement with Featurespace to apply machine-learning technology to fight fraud.
Cambridge, U.K.-based Featurespace uses adaptive behavioral analytics to examine payment card transactions in real time and determine from patterns which ones are genuinely fraudulent, and not just suspicious, the companies said in a May 19 press release. Featurespace's machine-learning platform is called the ARIC engine, which TSYS will harness to monitor individual transactions and the entire credit risk lifecycle.
The service’s core feature is its ability to reduce false-positive fraud alerts for genuine transactions, said Andrew Mathieson, group executive for issue products at TSYS, in the release. “It’s a sharp contrast to the industry paradigm of blocking more valid transactions in order to detect actual fraudulent activity,” he said.
TSYS in February announced a partnership with Ethoca for a new tool that provides near real-time notification of confirmed fraud, a service it’s dubbed the TSYS Transaction Recovery Network.