Brightwell launches AI-enabled anti-fraud platform

Arden becomes the latest AI-powered fraud protection platform

by | May 3, 2022 | bobsguide

US payment tech firm Brightwell has launched an AI-powered risk detection platform, Arden, to protect its clients from enumeration attacks.

The fully PCI-certified tool utilises a rules-engine and client data consortium to provide real-time insights and actionable recommendations to identify fraudulent transactions.

Brightwell built the protection platform in-house following the brute-force cybercriminal attack on the company in 2020 that drained Brightwell cardholders of their finances, resulting in $2.5 million in stolen funds.

“Account security is a serious concern for many people,” said Ernie Moran, Brightwell’s senior vice president of risk.

“Experiencing a BIN attack first-hand inspired us to develop the tools to take the fight to the fraudsters, eroding their capacities to exploit people’s hard-earned money for their benefit.”

According to the company’s website, Arden has, so far, blocked 556 merchants and 288,000 fraudulent transactions.

Fraud attacks in fintech skyrockets

The launch highlights the increasing emphasis placed by fintech companies and financial institutions on tackling the rising incidence of fraud in the sector, and in particular cyber-fraud measures as a key component of cyber-security.

In its Q1 2022 Digital Trust & Safety Index report, the US fraud protection platform Sift stated that fraud across fintech companies increased by 70percent in 2021, with enumeration attacks – like the one experienced by Brightwell – “becoming more prevalent”.

The report also highlighted that payment fraud attacks rose by 200percent in digital wallets, 169percent in PSPs and 140percent in crypto exchanges.

The increasing attacks have prompted fintech companies to strengthen their security tools, often turning to automated, machine learning-based tools.

Fintech companies make move to tackle fraud

Last month, New Jersey-based fintech infrastructure specialist, Cross River Bank, partnered with fraud and compliance start-up Sardine on an API integration targeting fraud prevention for crypto payments.

Sardine’s proprietary software uses AI to provide a real-time fraud score based on a user’s identity, device and behaviour patterns at the time of account origination.

Mastercard also collaborated with Microsoft to boost its authentication and real-time decisioning intelligence capabilities to tackle online shopping fraud.

Asset managers are also increasingly incorporating fraud prevention into their risk management process, with AI enhancing the work of the risk management team.

According to a survey by risk technology provider Provenir’s recent AI survey, 78percent of the respondents were motivated to invest in AI-enabled risk decisioning to prevent fraud.

 

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