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AI, Machine Learning and Payment Security. A Balancing Act.

2022 06 29 payment companies use AI and machine learning

Chatbots, virtual assistants and checkout-free shopping experiences use AI and machine learning to make our lives easier and more efficient. Advances in computer processing and massive growth in data promise to revolutionise healthcare, transport, retail and the payments industry. Innovation means more than just improved processes and customer experiences. It also comes with great responsibility. 

According to Statista, the total transaction value in the digital payment segment will reach US$8.71tn in 2022. Such a massive amount of transactions both obstructs and helps to spot fraud. One thing is for sure. It needs an intelligent fraud detection system. 

Algorithms need training like any human does. The massive amount of transactions helps train them, but it also increases the occurrence of fraud.

Authentication – are you who you say you are?

In a recent report published by Visa, “Transforming Payment Security through Artificial Intelligence”, they explain how AI will transform payments and the security landscape.  Old-school authentication methods don’t serve digital consumers who expect a frictionless payment experience. Visa and Mastercard use biometric technology to authenticate themselves using their fingerprint, face or voice. The Visa solution uses machine learning to validate biometric matching and identify ‘spoof attacks’, adding an extra layer of security that PINs and passwords don’t offer. 

Beyond fraud detection and cyber defence, Visa is also using AI to power advances in consumer-facing technologies such as voice assistants, chat platforms and loyalty programs. Along with their clients, they are experimenting with AI-powered commerce experiences that anticipate and fulfil consumer needs in novel ways. 

What are you really up to? Malicious intent.

AI and machine learning have the ability to learn human behaviour and detect any variations from the norm. It differs from traditional rules-based systems because it can anticipate new forms of attack and then mitigate the damage. 

Pay it again Sam 

Some security tasks performed by humans are repetition and recurring. It means the security staff have to perform these tasks again and again. Machine learning is perfect to take this burden off their shoulders. It can collect data and look up IP addresses, collect URL intel, investigate domains and retrieve logs. AI can perform these tasks and provide enriched data as well as threat scores. 

It’s not a cold. It’s a pandemic!

According to Dataprot, 560 000 new pieces of malware see the light every day. There are now more than 1 billion malware programs out there, four companies will fall victim to malware every minute, and trojans account for 48% of all computer malware. Ask the Pentagon. Solar Winds blew into the bastion of freedom in more than one way in 2020.  A trojan horse of sorts, engineered by Russia’s premier intelligence agency, compromised the Pentagon, the State Department and the Department of Homeland Security. This does not equate to a common cold. It’s a pandemic that can’t be fixed with a glass of hot water and lemon. Malware demands automation to manage it end-to-end, from identification to investigating the threat to removal. 

Enter AI and machine learning. 

When a threat comes in, not only the security team needs to know about it. IT operations and development teams also need to stay abreast of threats. There is an added threat when the trojan horse attaches itself to a mail message, slack communication, JIRA ticket or PagerDuty alert. If users of any of these platforms don’t know about it immediately, the malware will spread before you can plug the hole. Automated security alerts done by AI can take care of it. 

These are just some of the ways AI and machine learning can contribute to a more efficient and secure payment system that adheres to payment regulations. If you’re looking for the latest in security, speed, and convenience in payments, speak to Truevo. We take security very seriously, and we collaborate with the latest and best in security technology. Drop us a mail. We can’t wait to do the future securely with you. 

Picture of Saskia Schuldig
Saskia Schuldig
Content Marketer at Truevo Payments
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Disclaimer: This content has been written for informational purposes only. It should not be construed as legal or business advice.

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