Danish payment firm Nets has entered into a new partnership with KPMG to deliver an AI-powered payment fraud prevention solution.
The offering, dubbed Nets Fraud Ensemble, uses machine learning to reduce fraudulent transactions.
Nets Fraud Ensemble comprises multiple models, which work in tandem, to assess every transaction.
The AI-powered tool is designed to enhance its fraud prevention capabilities with time, generating lesser number of false positives.
According to Nets, the solution reduced fraudulent payments by 25% within weeks in its initial trials. The figure went up to 40% in the long-term.
Additionally, Nets Fraud Ensemble decreases operating costs and chargebacks enhancing cardholder experience.
With the new solution, Nets aims to address the growing challenge of fraudulent transactions across Europe especially in card not present (CNP) transactions.
Nets head of Digital Fraud, Intelligence & Research Sune Gabelgård said: “Although initiatives such as 3D-Secure have done much to make it more secure for people to shop online across Europe, the industry still faces challenges.
“Many issuing banks have focused on fraud prevention through consumer education, but the industry must also tackle the problem where it starts and where it is orchestrated by organised criminal enterprises: on the internet.
“Nets has significant and proven capabilities in fraud monitoring and prevention, and has been utilising AI in this area for several years. Nets Fraud Ensemble takes this to the next level.”
KPMG Nordic head of NewTech and Financial Services Bent Dalager said: “The development of Fraud Ensemble and its state-of-the-art algorithms is the result of Nets’ and KPMG’s combined innovation capabilities, AI experience and fraud monitoring and prevention expertise.
“It’s a big step forward in the use of AI to fight fraud.”
Recently, Danish challenger bank Lunar Way tapped Nets to deliver payment solutions for its users in Sweden, Denmark and Norway.