Fraudio is the company that develops security solutions for merchants, service providers, acquirers, banks, and issuers. The company was established in 2019 by artificial intelligence experts and data scientists. The team decided to develop a payment service provider along with a merchants’ acquiring bank. According to the statement of the platform’s co-founder João Moura, specialists of the team were disappointed with the existing capabilities of fraud protection. Therefore, they came up with the idea to create their own solution for fraud detection. So, the team started working over the plug-and-play product. Fraudio is headquartered in Amsterdam, and has offices in London, Barcelona, and Lisbon.
The company develops and employs AI machine learning tools to catch fraud. When powerful cloud computing capabilities are combined with networked databases, it raises machine-learning fraud detection to a higher level. Fraudio SaaS products are powerful, effective, fast, accurate, and cost-efficient. But what is more important, the solution is available for all.
The Fraudio products can be used by partners with a large number of transactions that can take advantage of the versatile, networked datasets, giving a full picture. All customers using the Fraudio service get the same level of security, regardless of the business scale. The same data is provided to all participants of the system.
The network processes up to 50 million transactions per month. Thanks to high-end service performance, merchants can guarantee a seamless payment process, thus gaining happier and more loyal consumers, hence a larger customer base.
Payment fraud detection is used to control fraud in real time. The tool is integrated in several days through the connection of an API to the system that gives access to numerous machine-learning models, which have been trained through networked datasets with billions of transactions. This is a powerful AI, granting access to the most accurate data about fraud, that decreases the number of chargebacks and fraud.
When customers try to buy a commodity or a service, the user’s data is sent to the Fraudio API and after billions of calculations fulfilled by powerful AI, the fraud score is determined. Despite the fact that huge work is conducted, the whole process takes just milliseconds. The system delivers accurate results obtained thanks to a simple traffic-light system. As stated above, scoring and classification of transactions is performed with the assistance of traffic lights that allows one to see the result instantly and take action as soon as possible to avoid negative consequences. If the light is red, the transaction is blocked. The green and orange light classification either allows the particular transaction, or puts it aside for further screening. It implies investigation, manual reviews, 3DS protocol, and other measures. Merchants can decide on tolerance for fraud and select settings according to a high or a low level of risk. The adjustment of the traffic-light configuration is performed manually, and can depend on business needs or other circumstances.
When customers select a Merchant Initiated Fraud Detection service, the company monitors the behavior of customers, sending alerts to merchants when unusual patterns and suspicious changes are noticed. The AI learning techniques help the company to assess the behavior of customers in real time, based on long term profiles of users. Merchants can get alerts each time when fluctuations in behavior are noticed. This is how fraudulent activity is usually spotted. Fraudio algorithms capture the current trends, popular scams, while AI introduces adjustments on the event-based activity and certain fluctuations.
Pricing for using Fraudio products starts from 1200 euros per month.
How to connect to the system
The official website of the company states that the integration with the Fraudio system is easy. Merchants should get in touch with the company to schedule a call with its representative. They should fill out the form offered on the site and submit an application.