Real-Time AI-Powered Fraud Detection for Secure Payment Processing
Financial Services
Case Overview.
As digital payment platforms become essential to modern finance, safeguarding these systems against fraud is more critical than ever. A U.S.-based healthcare finance solutions provider approached Pegasus One to address their pressing need for robust security measures. The client, having previously fallen victim to brute force attacks, sought a real-time fraud detection solution to safeguard their payment processing platform and reduce the associated financial losses.
Artificial Intelligence, Rule-Based AI Systems
Challenges.
The client faced urgent challenges that required immediate intervention:
- Brute Force Attacks
- Repeated fraudulent attempts to use stolen credit card numbers had resulted in significant losses and escalated network fees for declined transactions.
- Lack of Early-Warning Systems
- Without proactive fraud detection measures, stolen cards were used before being flagged, leading to vulnerabilities in the payment ecosystem.
- Rapid Deployment Need
- Given the frequency of attacks, the client required a scalable, cost-effective fraud detection system that could be implemented quickly.
Our Approach.
Pegasus One’s financial technology experts designed and implemented a real-time, adaptive AI fraud detection system tailored to the client’s requirements:
- Rule-Based Real-Time Monitoring
- Developed a real-time AI-driven rule engine to identify and block fraudulent activity instantly.
- Violations triggered immediate actions such as declining the transaction and flagging the card as an exception for future prevention.
- Self-Learning AI System
- Integrated a self-learning mechanism that analyzes detected fraud patterns to continuously refine and create new rules, enhancing the system’s adaptability over time.
- Rapid Deployment
- Leveraged our expertise in AI and scalable architecture to deliver the solution within months, minimizing disruption and addressing the client’s immediate needs.
Results Delivered.
The implementation of Pegasus One’s AI-powered fraud detection system produced transformative results for the client:
- Reduced Network Fees
- Achieved a $20,000–$25,000 monthly reduction in network fees by preventing fraudulent transactions.
- Enhanced Security
- Detected and blocked over 1,000 fraudulent attempts per week, significantly mitigating risks from brute force attacks.
- Continuous Improvement
- The self-learning system generated valuable insights, enabling the development of more effective fraud detection rules over time.
- Scalability and Future Readiness
- The solution was built to scale alongside the client’s growth, ensuring ongoing protection as transaction volumes increase.
- Peace of Mind
- Eliminated the threat of potential litigation stemming from fraudulent activity, offering long-term confidence in their payment security infrastructure.
Value Delivered.
Pegasus One’s innovative fraud detection solution empowered the client to:
- Reduce Operational Costs: Minimized financial losses from declined transactions.
- Strengthen Platform Security: Provided robust, real-time protection against fraud.
- Achieve Operational Efficiency: Delivered a cost-effective, scalable, and future-ready solution with minimal deployment time.
