Mobile app hacking is one of the fastest-growing targets for cybercriminals, and the number of phones or tablets will be over 13 billion by the end of the year, according to The Radicati Group. With the online market expected to hit a record of $143.7 billion this season, AI and machine learning will be essential to reducing mobile fraud, according to Forbes.
Here are the top seven ways AI and machine learning can help protect your business in this new cybersecurity epidemic:
- Accurately Predicting Fraudulent Transactions
False positives can be very frustrating to customers. AI can help more accurately identify fraudulent transactions and save a customer from having to re-enter their identification and payment methods.
- Basing Fraud on Anomalous Activity
SIM swapping is often used by cybercriminals to gain the personal data of the user. If your phone’s security is breached and a mobile app is linked to your bank, your account could be used to make fraudulent transfers or purchases. Mobile providers can use AI-based risk scoring to prevent anonymous activity.
- Learning From More Data
AI and machine learning work in real-time and across multiple industries. Having access to this larger set of data helps predict fraudulent transactions faster and more accurately.
- Combining Supervised and Unsupervised Algorithms
Using both of these methods allows for fraudulent transactions to be identified faster – sometimes even within seconds. This speed helps merchants and improves a customer’s buying experience.
- Knowing When To Use Two-Factor Authentication
While an important tool for protecting a customer’s data, two-factor identification can be more of a hassle if a customer is already logged in and is being asked for more information. AI and machine learning can help identify when two-factor authentication is actually needed or if a system is showing a false positive.
- Giving a Real-time Transaction Risk Score
AI can provide merchants with a real-time transaction risk score that applies to all channels of their company within seconds. This score helps merchants protect their business and customers from fraudulent transactions by machine learning’s ability to combine patented, proprietary supervised and unsupervised algorithms and technology.
- Allowing Analysts To Focus on More Valuable Work
With AI and machine learning techniques able to approve or reject orders automatically, fraud analysts are able to focus on more strategic and rewarding work for the company. This allows companies to reduce the time it takes for manual fraud reviews, as AI and machine learning helps a business find more sophisticated, nuanced abuse attacks in a marketplace extremely fast.
Companies can utilize AI and machine learning across all channels to help protect the high number of mobile transactions that will be made in the next couple of weeks.
At MDL Technology, your company’s security is our number one concern. By offering services such as 24/7 support, network monitoring, offsite data backups, auditing and compliance and more we help ensure that you don’t need to stress about private information becoming public. Learn more about the services we offer by visiting our website.