AI BASED CARDS PAYMENT FRAUD DETECTION
About the client
The client is a payment services provider
Business Challenges
- The client was processing more than a half a million transaction per day
- Some of these transactions were fraudulent as reported by the card user
- The mandate was to predict such transaction and block them
- The prediction had to work in a fraction of a second, so that the user experience would not be compromised.
- As the number of fraudulent transactions were very low (0.004%), it was very hard to arrive at a generalized solution
Solution
Our solution was an AI based model that provided a confidence score for each transaction. A low score would mean that the transaction is suspicious. The solution included the following capabilities
- Sampling of data to reduce the data skew
- Feature engineering to add more decision parameters for the AI model
- Synthetic data extrapolation
- AI based transaction scoring model
Benefits
- The client used this model along with a combination of other models that they had to make decisions on the card transactions