SIBS and IBM together to combat fraud with an innovative cognitive solution
SIBS, one of the largest payment processors in Europe and Africa and leader in financial solutions, has just entered into a strategic partnership with IBM to develop a cognitive fraud prevention solution in real-time, innovative and unique, aggregating SIBS’ know-how and security and anti-fraud procedures, with IBM’s state-of-the-art cognitive technology based on Watson. The goal is to detect and prevent sophisticated fraudulent activity in order to reduce customer damage resulting from fraud, as well as provide more transparency and consumer confidence in their transactions.
The challenges and opportunities in anti-fraud detection and prevention services are growing exponentially in new areas such as instant payments and open banking APIs. Additionally, the digital footprint of financial services customers has steadily increased with their hybrid patterns of use among various channels – card, internet and mobile phone. On the other hand, technology capabilities are supporting increasingly complex, sophisticated and global fraud and cybercrime patterns. Finally, the impact of regulation is creating new challenges to all type of players, like financial institutions, merchants, public entities and third party providers.
In this context, SIBS has decided to strengthen its commitment to fraud detection services – PAYWATCH -, incorporating advanced analytical capabilities and artificial intelligence, which, together with IBM, will develop and enhance a Fraud Prevention as a Service (FPaaS) to respond to these new market opportunities and strengthen their presence in new markets and segments.
To improve the performance of the foundation tool for this service, SIBS will utilize IBM’s Counter Fraud Management for Safer Payments solution available on Watson’s integrated platform for financial services with unique cognitive capabilities, machine learning algorithms, and scalability for superior fraud losses detection accuracy, greatly reducing false alarms and operating costs.
By monitoring real time multiple online payment channels and multiple players, SIBS will further improve on its strong track record and deliver major savings by better identifying and shortening the cycles of detecting fraud patterns, reducing the time and effort to update existing models or deploy new ones and allowing for faster and more effective forms of responses, strengthening the customer experience and confidence.
SIBS and IBM are now working together on a global strategy to develop an end-to-end monitoring, prevention, detection, interception and fraud investigation into payments, or any other processing transaction, provided in “as-a-service” model. ” This service is provided in an innovative way to several entities, whether banks, merchants or other payment service providers, and globally, combining SIBS deep knowledge in the investigation, systems operation and procedures for fraud detection, interception and prevention with advanced IBM’s technology.
“We are confident that this partnership, bringing together two leading companies such as SIBS and IBM, will result in an excellent service delivery that will help reducing customer payment fraud levels”, said Madalena Cascais Tomé, SIBS CEO, adding that “with this one-stop-shop service there will be a range of players in the domestic and international market protected with the most advanced cognitive solution and the most qualified anti-fraud teams, enabling even more secure payments”.
“This announcement represents another milestone in the strategic alliance we have been developing with SIBS. Launching an innovative solution for cognitive fraud, in Portugal and World Wide, that combines SIBS’ recognized domain knowledge and experience with ‘IBM Industry Platform for Watson Financial Services Solutions’”, said António Raposo de Lima, GM IBM Portugal. “It is with great satisfaction that we can contribute to SIBS cognitive journey launching another initiative that leverages the international recognition of a Portuguese company”.
SIBS provides payment services to more than 300 million users in more than 12 markets, processing annually 3 billion financial transactions with a value of more than 4.5 billion euros. Payment systems in Angola, Malta, Poland and Portugal already benefit from SIBS’ fraud prevention, monitoring and detection services.