IBM to tackle fraud with Iris Analytics

IBM is adding to its fraud prevention capabilities with the acquisition of a German software firm

IBM is going to apply machine learning to fraud busting with Iris Analytics.

While that makes it sound as though it will be using Watson AI systems to identify fraudsters by gazing deep into their eyes, this is really about its acquisition of a German software firm called Iris Analytics.

Iris monitors banking transactions and uses machine learning to spot previously unknown patterns of fraudulent transactions in real time. The system can work alone or in conjunction with human analysts, according to IBM

With only one bank in six equipped with real-time fraud detection systems, and even those taking a month or more to learn to stop new attacks once they are identified, IBM sees a big market for integrating systems like that of Iris with its existing antifraud products.

This is far from IBM's first move into the antifraud market.

In September 2013, it bought Israeli antifraud specialist Trusteer, which specialized in monitoring financial services and provided a browser protection plugin for online banking.

Early the following year it rolled out a real-time fraud detection tools, Counter Fraud Management Software, building on its previous acquisitions of Cognos, SPPS, i2 and FileNet.

IBM hopes that the new "cognitive computing" approach taken by Iris will allow it to speed up and scale up its fraud detection systems -- while also allowing customers to respond more rapidly by lowering the number of false positives that must be investigated.

The acquisition will bring it a number of existing Iris clients in the payment and banking industry, including the French Interbank payment card processing network e-rsb operated by Stet. According to IBM, Iris adds around 5 milliseconds to the processing time for e-rsb transactions. That's a small addition to the hundreds of milliseconds the network takes to process each of the 750 transactions it handles per second, according to the e-rsb website.

It's not just big banks or their payment processors that are looking to machine learning to reduce fraud: smaller banks are buying such services too. For example, the Orrstown community bank in Pennsylvania built its fraud detection system using Splunk and the Prelert behavioral analytics package.

With the introduction of Chip and PIN shifting the liability for fraud, and future payment systems likely to cause similar disruptions, its more important than ever to make a quick decision about whether a payment is suspicious or safe to accept, according to Iris.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service
Show Comments

Brand Post

Bitdefender 2018

Secure and Save before time runs out with Bitdefender Exclusive Clearance Offer! Get Bitdefender Total Security 2018 Now!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?