Revolutionising Payment Security: Tackling Instrument Takeover (ITO) at Scale

“Achieving a 92% success rate in mitigating Instrument Takeover fraud across critical payment categories, optimizing security without compromising user experience.”

With the rapid growth of digital payments, the concentration of transactions among On-Us merchants—those processed by the same bank or payment network—has soared to over 92%. While this streamlines operations for services like rent payments and tuition fees, it also amplifies the risk of Instrument Takeover (ITO) fraud. Such incidents pose a critical threat, undermining trust and financial security for businesses and consumers alike.

The Challenge: Navigating High-Risk Transaction Scenarios

ITO fraud occurs when malicious actors compromise a payment instrument (e.g., a card or account) to execute unauthorized transactions. The high transaction volume in categories like rent and education payments creates an environment ripe for exploitation. Traditional rule-based defenses are ill-equipped to handle the complexity and scale of modern fraud patterns, leading to:

• Increased Fraud Losses: Legitimate-looking fraudulent transactions bypass existing defenses.
• Customer Frustration: Overly stringent security measures block genuine transactions, disrupting user experiences.
• Operational Inefficiencies: Manual interventions in fraud detection are time-intensive and error-prone.

The Solution: Advanced Fraud Prevention with Machine Learning

To address these challenges, we developed and implemented a cutting-edge, multi-faceted solution to combat ITO fraud effectively.

1. Supervised Learning Model

We deployed a supervised learning model specifically trained to detect ITO fraud at the transaction level, acting as a robust secondary defense layer.

• Data-Driven Accuracy: The model analyzes transactional data to identify subtle patterns associated with fraud.
• Scalable Defense: Capable of handling high transaction volumes without compromising performance.

2. Integration with user journey

Integration within the transaction journey enabled automatic blocking of high-risk transactions in real time, reducing manual intervention and response times.

• Real-Time Risk Assessment: Assigns risk scores to transactions, triggering blocks for those exceeding predefined thresholds.
• Seamless User Experience: Minimizes disruptions for legitimate users through intelligent, adaptive decision-making.

3. Automated Monitoring and Optimization

Automated monitoring systems ensure that the solution remains effective over time while aligning with business objectives.

• Continuous Performance Tracking: Monitors key metrics such as fraud detection rates, false positives, and latency.
• Proactive Model Retraining: Provides recommendations for periodic updates to address evolving fraud patterns.

The Results: Measurable Impact on Security and User Trust

The implementation of this solution delivered transformative results for payment security:

• 92% Success Rate in Mitigating ITO Fraud: Achieved near-complete protection across On-Us merchants, significantly reducing fraudulent activity.
• Optimized Customer Experience: Reduced false positives, ensuring genuine transactions are processed smoothly without unnecessary blocks.
• Operational Efficiency: Handles millions of transactions daily with minimal latency and automated workflows, lowering operational costs.

The Benefits: Securing Transactions While Enhancing Trust

This solution not only combats fraud but also strengthens the overall payment ecosystem:

• Enhanced Trust: Customers and businesses alike benefit from improved security and reliability.
• Scalable Protection: Adapts to the needs of diverse industries, ensuring comprehensive fraud prevention.
• Future-Ready Approach: Leverages machine learning to stay ahead of emerging fraud tactics.

Why This Matters

In an era where trust is the foundation of digital transactions, protecting payment instruments is more critical than ever. Our solution ensures businesses can deliver secure, seamless payment experiences, even in high-risk scenarios.

Looking Ahead

As fraud tactics continue to evolve, our commitment to innovation and adaptability remains unwavering. We are continuously refining our models, exploring new technologies, and expanding our solutions to address the ever-changing landscape of payment security.

Join us in redefining fraud prevention. Safeguard your payments, protect your customers, and build a future rooted in trust and security.protect your platform, and redefine what it means to deliver secure, seamless access.