Fraud prevention and payments solutions provider Alaric has opened a Rome-based data analytics research centre to further develop the ultra high-performance numerical algorithms for its Fractals fraud detection system. The company claims such algorithms are critical to ensuring truly effective ‘in-flight’ fraud prevention.
Being in-flight, the fraud is detected in real time and not after the transaction is completed. Alaric said the investment is as a reflection of a long standing relationship with the data-mining group at the Universitá Sapienza di Roma.
The new centre will enable Alaric to accelerate its algorithmic research programme, thereby enhancing the levels of support delivered to its growing base of analytics customers in Europe, the Americas and Asia/Pacific.
"Historically, real time model-based analytics have mostly been used by card issuers for third party fraud detection," Alaric Systems operations director Peter Parke said. "However, the need for in-flight predictive analytics is exploding to encompass first party fraud, merchant fraud and dynamic credit risk management, as well as card fraud prevention. Many banks and processors, whether issuers, acquirers or PSPs, are recognising the benefit they can derive from deploying real time model-based analytics."