Credit Card Fraud Prevention in Switzerland: AI-Driven System Proves Effective
Introduction
A Swiss banking giant has been successfully using artificial intelligence (AI) to prevent credit card fraud for over two decades, assessing a staggering 500,000 transactions daily. The UBS Card Center’s FICO Falcon platform is the software behind this feat, comparing all transactions based on model profiles, rules, and known practices used by scammers.
How it Works
The system has been fed with a multitude of rules and behavior patterns, examining factors such as:
- Transaction volume
- Type
- Amounts
- Card use at branches and other locations
AI triggers warnings if it detects inconsistencies, but not every suspicious case proves to be true, as human behavior can be unpredictable.
Real-Life Example
A recent example illustrates this point: a woman who ran out of time to stock up on essentials before her vacation went shopping at various stores in Zurich’s main train station. The system flagged the transactions due to their small size and proximity in time, but the woman simply laughed and explained the situation when contacted by the fraud team.
Refining the System
The UBS Card Center’s fraud team works daily to refine the early warning system, leveraging employee input to create new rules and learn from behavior patterns. According to Marcel Drescher, Head of Fraud Services, the department’s expertise lies in interpreting individual cases, which enables the system to learn effectively.
Results
Since 2015, the bank’s fraud prevention rate has increased by a significant 84%, thanks to this collaborative approach. The use of AI and human intelligence has helped stabilize the number of fraud attempts, which had been rising continuously from 2000 to 2016 due to the sale of stolen credit card data on the dark web.
Conclusion
However, with the implementation of new security mechanisms and technological advancements, credit card users in Switzerland can rest assured that their transactions are better protected. The UBS Card Center’s AI-driven system has proven effective in preventing credit card fraud, and its continued refinement will ensure the safety of transactions for years to come.