We are in a world with rapidly involving tech, where payments are increasingly electronic and fraud attempts are all but inevitable. Fortunately, numerous anti-fraud solutions have appeared in recent years, including Kount’s new AI-driven fraud prevention solution, which uses machine learning to accurately prevent and stop known and emerging fraudulent transactions. According to Kount, its AI is next generation and significantly improves the accuracy of fraud prevention. To learn about this offering, Loyalty360 recently spoke with Gary Sevounts, Chief Marketing Officer for Kount.
He first discussed three trends identified by Kount that led the company to develop its new AI solution. “One trend,” Sevounts said, “is that companies, all the merchants as well as companies with an online, e-commerce presence, are continuously engaging in digital innovation—should that be loyalty programs, e-gift cards, or new types of initiatives to enable a better user experience, enable new revenue channels, or just expand their business. The reason that matters is that, along with new ways of generating revenue, it also introduces new types of vectors for threat, for abuse, for fraud. And fraud is evolving. These companies are trying to protect against and stop fraud.”
He continued, “The second interesting trend is that fraud is becoming more sophisticated. The attackers themselves are beginning to use machine learning, and attacks are not just on payments anymore. They’re also on identities. Things like credential stuffing, bot attacks, phishing, and spear-phishing. There’s a lot of new, automated types of attacks that are targeted, and their use of machine learning makes them more and more effective.”
The third trend Kount has identified is the scope of fraudulent activities. “Not only are attacks more sophisticated now, harder to detect, taking over accounts,” Sevounts said, “but they’re also global. We’re seeing more attacks from around the world.”