Eftpos Turns on AI-Based Fraud Scoring Tech for Online Shopping

Eftpos Turns on AI-Based Fraud Scoring Tech for Online Shopping
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Eftpos has today officially switched on its fraud-countering tech – a system that uses artificial intelligence/machine learning to learn what fraudulent activity is and stop it in its tracks.

With Eftpos recently making the shift to online, instead of just at the payments terminal, this new fraud tech will be used to block online crooks from stealing your info.

The new online counter-fraud capability comes as part of a partnership with Featurespace. Based in Cambridge, England, Featurespace is described as a financial crime prevention company specialising in counter-fraud scoring and integrity intelligence.

Eftpos said employing self-learning technology to accurately predict individual behaviour in real time is the only meaningful way to protect people and organisations from the rising threats of fraud and financial crime.

Of the new tech, Eftpos was light on details, rather the company opted to say the initiative was part of its overall investment in security-related upgrades to its entire network.

In August, Eftpos said it was investing millions of dollars over five years to “deliver the next generation of secure payments technology”. At the time, it pledged an additional $30 million to its existing $70 million upgrades/improvements kitty.

“This built-for-purpose fraud detection engine uses artificial intelligence and machine learning to bolster security for eCommerce and is part of a $100 million Eftpos funded digital upgrade,” Eftpos CEO Stephen Benton said in a statement Tuesday.

“The shift to AI-driven predictive fraud scoring is a crucial milestone in the evolution of Australia’s digital payments ecosystem and brings to life features designed to keep Australians safe in the Digital Economy,” he added.

On the shift to the online shopping realm, Benton said Eftpos’ shift will “quickly drive much needed large-scale competition and place downward pressure on transaction costs”.

Before today’s announcement, Eftpos was available for use online for some Card On File payments where banks have implemented the service for their merchant customers, and deposits and withdrawal payments via the Beem It mobile wallet.

Eftpos’ “security kit bag” now includes the new security engine, two factor authentication (3DS), tokenisation, a disputes/chargebacks capability and a digital identity solution, connectID.