STRATEGIC PARTNERS
The combination of IRIS technology with IBM counter-fraud capabilities creates a comprehensive solution for combatting fraud, the companies say.
January 18, 2016
IBM has acquired IRIS Analytics, a German provider of real-time analytics designed to combat payment fraud.
According to a press release, the IRIS solution acts as a "virtual analyst," applying machine learning models to help analysts detect fraud and act quickly to help reduce fraudulent events. The program bridges the gap between expert-driven rules and traditional predictive modeling.
IRIS applies artificial intelligence and cognitive techniques to partner with human experts in suggesting best fit analytics interactively, while testing and deploying models with real production data — as it happens and without downtime.
"The cognitive computing approach unleashes a new paradigm in fighting fraud," said Alistair Rennie, general manager of industry solutions at IBM.
"By integrating IRIS Analytics with IBM's counter-fraud technology, we will help organizations more accurately detect fraud at scale and speed so that they are in a position to implement countermeasures quickly ... while at the same time assist[ing] with dramatically lowering false positives."
A recent IBM Institute of Business Value study found that only 16 percent of banks could detect fraud as it is attempted. The company said that countermeasures against identified schemes typically require more than four weeks to deploy.
"As the payments industry evolves with new payments methods such as chip and PIN, mobile payments and [real-time] payments, the ability for financial institutions to accurately make decisions about what is suspicious and what is legitimate before the payment is executed is required," said IRIS Analytics CEO Constantin von Altrock. The combination of IRIS technology with IBM's counter-fraud capabilities creates a comprehensive solution for real-time payment fraud prevention."
