IBM Acquires A Real-Time Analytics Company To Combat Payment Fraud
IBM confirmed that it acquired IRIS Analytics, a privately held company that specializes in real-time analytics to combat payment fraud.
IBM noted in its press release that a proprietary study showed that only 16 percent of banks could detect fraud as it is attempted. The company added that IRIS combats this ongoing problem as it "provides a real-time fraud analytics engine that leverages machine learning to generate rapid anti-fraud models while also supporting the creation and modification of ad-hoc models, proven successful on various sized payment platform."
IBM added it will combine IRIS' analytics abilities with its counter fraud technology to "help organizations more accurately detect fraud at scale and speed so that they are in a position to implement countermeasures quickly, with more control and transparency, while at the same time assist with dramatically lowering false positives."
"Defenses against financial crime are in critical need of innovation and improvement. As the payments industry evolves with new payments methods such as chip and PIN, mobile payments and immediate payments, the ability for financial institutions to accurately make decisions about what is suspicious and what is legitimate before the payment is executed is required," said Constantin von Altrock, Chief Executive Officer of IRIS Analytics. "The combination of IRIS technology with IBM's Counter Fraud capabilities creates a comprehensive solution for real time payment fraud prevention."
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