Diners Club South Africa has completed the implementation of new fraud detection and prevention software from ai Corporation. The RiskNet software gives Diners Club near-real time alerts of possible frauds, while its self-learning neural model continually improves fraud scoring and pattern detection based on user-definable rules.
The implementation is also part of Diners Club’s long-term strategy to continuously improve its infrastructure to protect and serve its customers.
Diners Club was previously using a fraud detection system that had been developed in-house. However, Diners Club’s fraud detection team found it inflexible and at possible risk of being unable to cope with growing volumes of card payments.
Grace van Deventer, senior manager for Value Chain Management & Optimisation at Diners Club SA, says: “We chose to run RiskNet in parallel with our in-house system for around six months. This is allowing us to build up our rules base and pattern-detection algorithms in RiskNet and to confirm that it exceeds the functionality and usability of our original system, but without any risk to our fraud detection capabilities or excellent customer service levels.
“Fraud isn’t local; it’s a global problem. That’s why we have integrated RiskNet with our global fraud detection system running on Diners Club International’s servers. This gives us real-time alerts for all possible frauds, either originating from South Africa or from other international Diners Club card acquirers.”
Using RiskNet, Diners Club now tracks potential frauds as combined ‘cases’, with the alerts prioritised to show which fraud rules have been broken. This is allowing the company’s fraud detection team to make better assessments and cope with higher payment volumes, as part of its focus on protecting its customers from fraud.
Grace van Deventer of Diners Club SA comments: “While current system and processes have been good at detecting card fraud, it is key to optimise and continuously improve our capabilities even further.
“Diners Club’s fraud detection team is enthusiastic about using RiskNet over the old system and our senior management are confident in RiskNet’s ability to provide the right level of information for them.”
The implementation of RiskNet included ai Corporation customising it to take into account both Diners Club’s own internal requirements as well as local card payment regulations and patterns of fraud.