First Data launches new merchant solution to prevent fraud across all commerce channels

First Data, a global leader in commerce-enabling technology, today announced the launch of Fraud Detect, a comprehensive fraud solution for merchants around the world. Fraud Detect leverages artificial intelligence and machine learning, fraud scoring, cybersecurity intelligence, and information from the Dark Web to provide merchants with the capability to detect fraudulent in-store, at the pump, online, mobile, and in-app transactions before they occur.

Each year, First Data powers trillions of dollars of transactions around the world, including $2.2 trillion in 2016. Using artificial intelligence, Fraud Detect analyzes those vast datasets to identify fraud and potential chargebacks. In parallel, Fraud Detect incorporates data from the Dark Web, a collection of websites that exist on an encrypted network, to enhance the power of the solution with information that would otherwise only be viewed by cybersecurity experts.

„In a recent pilot, Fraud Detect identified and prevented fraud that was undetected by other solutions in the market. Overall, merchants in the pilot saw lower false positive rates and an 80% improvement in identifying fraudulent transactions before they occurred. Fraud Detect also scored and assessed transactions in less than half a second.”, according to the press release.

Fraud Detect is available for businesses of all sizes and is applicable to a wide variety of industries, including retailers, restaurants, petroleum companies, and service providers.

“With Fraud Detect, our clients have seen an unprecedented reduction in fraud risk, while increasing payment acceptance and creating a better customer experience,” said Steve Petrevski, Senior Vice President, Security and Fraud Solutions at First Data.

One key area for Fraud Detect is eCommerce. According to Aite Group, eCommerce fraud is expected to reach $5.9 billion by 2020, nearly double what it amounts to today. Consequently, merchants seeking to expand their businesses across online and mobile channels are increasingly vulnerable to eCommerce fraud risk.

“Merchants are expanding into new commerce channels, and they want technology solutions that protect their customers and reduce their exposure to false declines, chargebacks, and fraud,” said Julie Conroy, Research Director at Aite Group. “The technologies behind Fraud Detect and First Data’s ability to identify fraudulent transactions in real time will provide significant value to businesses around the world.”

First Data is a global leader in commerce-enabling technology and solutions, serving approximately six million business locations and 4,000 financial institutions in more than 100 countries around the world. The company conducts commerce every day by securing and processing more than 2,800 transactions per second and $2.2 trillion per year.