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Machine Learning Systems Strengthen Fraud Detection for New Zealand Businesses

The ability to detect scams or fraud is a critical pillar for businesses across the world; more so as they migrate increasingly online. But the fact of the matter is that fraudulent transactions are extremely rare; they account for a very small percentage of activity within a company.

An online safety organisation said its new quarterly report shows that although there has been a decrease in overall scam reports, the amount of money lost has increased by 21.3% and the average loss in the past quarter was more than US$ 6,400 – an increase of 50%. The challenge is that without the proper tools and systems in place, a small percentage of activity can quickly turn into large monetary losses.

As traditional fraud schemes fail to pay off, scammers have learned to adapt their strategies. The good news is that, due to advances in fraud analytics, systems can learn, adapt, and explore different patterns for preventing fraud.

In New Zealand, scams are the leading online crime when it comes to fraud attacks, according to new research from a software company. In order to manage scams for New Zealand businesses, the software company revealed its scam solution, a fraud tracking technology that it claims has laid the foundation for digital risk protection, one of the company’s proprietary solutions. In one year, the system helped save as much as US$ 443 million for companies in the Asia Pacific region, Europe and the Middle East, by preventing potential damages with its device.

Another New Zealand software company acknowledged that businesses lose billions of dollars to online fraud every year, however, businesses respond by investing in cumbersome fraud management solutions that often rely on hand-coded rules and are difficult to keep up to date.

This company also launched a fully managed fraud detection service, which it states can detect potential fraud activity in “milliseconds.” The device has now been used by the company for over 20 years to detect potentially fraudulent online activities, such as identity and payment fraud.

Businesses can choose a pre-built machine learning model template, upload historical event data, and create decision logic to assign outcomes to predictions when using the fraud detector. For example, if the machine model predicts potential fraud activity it can trigger an investigation.

Based on the type of fraud customers want to predict, the fraud detector will pre-process the data, select an algorithm, and train a model. The 20-year historical data from the company can improve the accuracy of the trained model even if the number of fraudulent examples provided by a customer to the fraud detector is low.

In recent years, the machine learning (ML) approach to fraud detection has received considerable attention, shifting industry interest ahead from rule-based fraud detection systems and toward ML-based solutions.

That being said, there are subtle and hidden events in user behaviour that may not be evident but still indicate possible fraud. Machine learning enables the development of algorithms that can process large datasets with many variables and support the discovery of these hidden correlations between user behaviour and the likelihood of fraudulent actions.

Another advantage of machine learning systems, overrule-based systems is a faster data processing and less manual work. Smart algorithms, for instance, work well with behaviour analytics to help reduce the number of verification steps.

Today, a scam is more than just a solitary fraudulent web page; it is an entire industry with advanced technologies under the hood and highly motivated cybercriminal groups with substantial financial resources. Expertise in combating cybercrime, comprehension of threat actors’ logic, and advanced scam tracking technologies are required if businesses want not only to detect but also prevent damage caused by the scammers.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.