London, 18 August 2004 - Future Route, the provider of Inductive Logic Programming (ILP) solutions to analyse and detect fraud patterns, today announced that the company is to take its fraud detection solution to market. After 10 man years of development in the Computing Laboratories at Oxford University and 15 man years of research and development in a commercial environment - iHex(tm) is born.
Future Route's unique iHex(tm) solution analyses and detects fraud patterns using Inductive Logic Programming (ILP) techniques. ILP is an artificially intelligent method of identifying previously invisible fraud patterns and pattern anomalies; this advanced machine learning solution then automatically creates and implements detailed and accurate rules that can stop fraud before it happens.
Current fraud detection and fraud management solutions use a variety of neural networks and statistical methods to detect fraud patterns. These systems have reached a technology plateau and often rely on supplementary rules created by fraud mangers. As the nature of fraud changes these systems need to be retrained by reprogramming their scoring method. They also do not identify patterns and generate the associated rules, a process that can take months. The number of old rules often builds up affecting accuracy and performance. One recent survey suggests over $10 billion is lost through credit card fraud each year; this equates to 1% of all transactions (Source: Meridien). iHex(tm) accurately identifies detailed fraud behaviour patterns, automatically generates and continuously enhances underlying rules which means that significant improvements can be made very quickly.
A further concern with existing fraud management systems is the increasing cost of 'false positives' - techniques used today are often 'heavy handed', questioning a large number of credit card transactions that are actually not fraudulent. This incurs high costs and irritates customers; an example of this comes from an undisclosed major credit card issuer that bore the cost of $700 million in false positives in Europe alone. iHex(tm) overcomes these inefficiencies with its continuous learning capability and ability to automatically create rules at near real-time.
Future Route's solution will:
- Quickly detect fraudulent patterns as they are happening
- Automatically generate rules for fraud management systems
- Significantly reduce expensive false positive rates
iHex(tm) is specifically designed for credit card companies, banks, government agencies and corporations to:
- Accurately identify fraudulent credit card transactions
- Detect fraudulent application forms
- Reduce the cost of identifying and creating rules
- Quickly identify and protect against flash fraud
- Continuously check for internal fraud or unusual events
- Detect anomalies in account transactions
Stephen Cole, CEO and Founder of Future Route, is a software industry technologist of 25 years experience specialising in the field of Police and Intelligence Systems. He was previously Managing Director of Verity Inc. (UK) for 6 years, after which he was founder and managing director of Streets OnLine Limited, the UK's fastest growing e-commerce company which was acquired by Kingfisher plc in December 2000. Stephen then accepted a role in Kingfisher plc as Research and Development Director for MVC Entertainment.
Stephen comments: "The unique technology behind our iHex(tm) solutions was originally discovered in Oxford University's Computing Laboratories for bio-informatics; the creation of these machine learning algorithms took 10 man years of research and development time. After we acquired an exclusive license for the technology, we spent a further 15 man years improving accuracy, usability and scalability to ensure performance in a commercial environment."
Stephen continues "We are therefore delighted to now be bringing Future Route and iHex(tm) to the market at this significant point in time - with the eradication of organised crime and terrorist activities being a prime focus in corporations and governments across the world. We firmly believe that we can play a key role in the capture and reduction of fraud by working alongside Fraud Managers and giving them the tools necessary to stop fraud before it happens."
Over the coming months Future Route will be making further announcements about the company and its solutions and will also be announcing the results of comparative trials. Future Route welcomes any enquiries through their website.