Financial Fraud Detection Methods in Japan Get Boost from New Partnership

In a major development aimed at combating the growing menace of credit card fraud, Intelligent Wave Inc. (IWI) and PKSHA Technology Inc. have joined forces to develop a cutting-edge fraud detection service.

Launching in June 2023: FARIS Shared Scoring Service Powered by PKSHA Security

The new service is set to launch in June 2023 and will be rolled out gradually across the entire payment card industry. The service aims to reduce damage caused by credit card fraud, which continues to rise annually. In the first half of 2022 alone, fraudulent use totaled approximately ¥20.6 billion, a significant increase from the previous year’s record high.

Addressing Limitations in Conventional Approach

The conventional approach to preventing payment card fraud involves individual companies using scoring systems to detect suspicious transactions. However, this method has its limitations as it only detects fraud methods used by other companies. The collaboration between IWI and PKSHA seeks to address this issue by developing a shared scoring system that enables data sharing among companies regarding credit card fraud techniques.

Benefits of the FARIS Shared Scoring Service

The service, powered by PKSHA Security, is expected to reduce damage caused by fraudulent use by 30% through data sharing among companies. As more companies adopt the system, the accuracy of card fraud detection will also improve. Moreover, the service will reduce the workload of analytical work in scoring systems, allowing companies to focus on other important tasks.

Quotes from Key Representatives

“We believe that stopping fraudulent card use is not just a business activity; it is also an essential activity for society to stop the crime,” said IWI Representative Director and CEO Kunimitsu Sato.

“PKSHA aims to create an affluent society where people and software co-evolve. With our vision of ‘coevolution of people and software,’ we will continue to share and utilize information among user companies, improve the level of fraud detection, and work hard to realize safe payment transactions,” added PKSHA Technology Inc. CEO Katsuya Uenoyama.

Impact on the Fight Against Credit Card Fraud

The FARIS Shared Scoring Service Powered by PKSHA Security is set to make a significant impact on the fight against credit card fraud in Japan and beyond. The partnership between IWI and PKSHA demonstrates the importance of collaboration in combating financial fraud, and we can expect to see further developments in this area as technology continues to evolve.