Amazon announced the launch of a new eCommerce fraud prevention tool, Fraud Detector, during Amazon Web Services (AWS) re:Invent 2019. Fraud Detector will analyze email addresses, IP addresses, historical transactions, and more via a private API. The tool will also use the data insights gained from its customer-facing insights to increase the accuracy of their fraud models.
In addition, merchants can use Fraud Detector to cease the fullfillment process of orders with suspicious payment patterns. Amazon claims the tool can increase the number of fruadulent orders identified by 80% over current methods.
“Amazon Fraud Detector is a fully managed service that makes it easy to identify potentially fraudulent online activities such as online payment fraud and the creation of fake accounts,” Amazon said via a statement. “Fraud Detector uses machine learning (ML) and 20 years of fraud detection expertise from AWS and Amazon.com to automatically identify potentially fraudulent activity so you can catch more fraud faster. With Fraud Detector, you can create a fraud detection model with just a few clicks and no prior ML experience because Fraud Detector handles all of the ML heavy lifting for you.”
Fraud Detector begins by analyzing merchants’ transaction information. It then builds a model algorithmically based on indicators of fraud for that specific merchant. However, the program does not eliminate human fraud analysts entirely from the equation. Companies can create additional rules for how to handle the model’s predictions. For example, a company could decide to set a rule discarding any order that does not meet a minimum threshold score.
Finally, merchants can create specific workflows based on risk assessments. So, a potentially high risk order could be sent for additional verification steps. This allows merchants to decrease customer friction on low-risk orders, while increasing it for high-risk orders. The hope is this capability will allow merchants to simultaneously minimize both chargebacks and false positive declines.
Fraud Detector is currently available in the US East (N. Virginia) region.
Sources:
https://aws.amazon.com/about-aws/whats-new/2019/12/introducing-amazon-fraud-detector-now-in-preview/