Fraudulent Transactions Identification Service to Launch in Japan

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Reducing Credit Card Fraud in Japan

Tokyo, November 1st - Intelligent Wave Inc. and PKSHA Technology Inc. are set to launch “FARIS Shared Scoring Service Powered by PKSHA Security,” a cutting-edge fraudulent transactions identification service, in June 2023.

The Growing Threat of Credit Card Fraud

In recent years, credit card fraud in Japan has seen an alarming increase. According to the Japan Consumer Credit Association, fraudulent use reached approximately 20.6 billion yen in the first half of 2022, a significant jump from the previous year’s record high.

Current Challenges and Limitations

Currently, each credit card company uses its own scoring system to detect suspicious transactions. However, this approach has proven insufficient against increasingly sophisticated fraud methods. The new service aims to address this issue by allowing companies to share data on fraudulent techniques and prevent fraud more effectively.

How the Service Works

The “FARIS Shared Scoring Service” was developed through the collaboration of IWI, a leading provider of fraud detection systems, and PKSHA, a company specializing in risk detection AI. The service uses SaaS-based technology and AI models to analyze transaction data and identify potential fraud.

Results of Proof-of-Concept Tests

According to PoC tests conducted at several credit card companies, the service has shown an average reduction of approximately 30% in fraudulent use compared to existing operational methods. As more companies adopt the system, the accuracy of card fraud detection is expected to improve.

The Future of Credit Card Fraud Detection

The launch of “FARIS Shared Scoring Service” marks a significant step forward in Japan’s efforts to combat credit card fraud and promote cashless payments. The service will be gradually expanded to the entire payment card industry in Japan.

Quotes from Industry Leaders

“We believe that stopping fraudulent card use is not just a business activity, but an essential activity for society,” said Kunimitsu Sato, Representative Director and CEO of IWI. “We are committed to developing highly flexible and rapid solutions that take advantage of partnerships between companies in Japan.”

“Our mission is to create a safe payment transaction environment through our AI-based fraud detection solution. We believe that this collaboration will contribute to the prevention of fraud not only in Japan but also around the world,” added Katsuya Uenoyama, CEO of PKSHA.

Conclusion

The launch of “FARIS Shared Scoring Service” is a significant step forward in Japan’s efforts to combat credit card fraud and promote cashless payments. With its advanced AI-powered technology and data sharing capabilities, the service has the potential to significantly reduce fraudulent transactions and create a safer payment environment for consumers.