Man and machine are the perfect pair when it comes to fighting payment fraud, according to a new white paper from European payments industry leader, Nets and multinational professional services provider, KPMG. Fighting Fraud with a Model of Models explains how utilising human expertise in combination with artificial intelligence (AI) and machine learning (ML) technologies can significantly increase the accuracy of fraud prevention services.

Fighting Fraud with a Model of Models [1.5MB PDF] explores the theoretical approach behind Nets Fraud Ensemble, an AI-powered anti-fraud engine developed in collaboration with KPMG, which can reduce fraudulent transactions by up to 40% on top of existing AI-based fraud prevention measures, for the benefit of banks, merchants and cardholders as well as society in general.

Sune Gabelgård, Head of Digital Fraud, Intelligence & Research, Nets, comments: “It’s time for financial institutions to stop playing catch-up with fraudsters and, instead, get ahead of the curve. The business of fraud prevention has become increasingly convoluted with the mass adoption of e-commerce, increases in cross-border payments, and the growing popularity of new digital payment methods all adding new layers of complexity. Humans cannot tackle these challenges alone. Until now, the use of true machine learning to fight payment card fraud has been limited. We need it now. There are patterns in the data which are hugely valuable in the fight against fraud, but that are too complex for the human brain to identify. Machine learning can not only find these, it can also analyse and act on them and prevent fraudulent transactions.”

Bent Dalager, Nordic Head of NewTech and Financial Services, KPMG, adds: “We have applied an innovative machine learning approach utilising several machine learning models in unison. This approach has a clear advantage and generates the most accurate fraud screening. When applied, this next level of fraud monitoring and prevention means banks and merchants can take a big step forward. Not only does it combat crime, it also improves the customer experience and dramatically reduces financial losses.”

The ‘brain’ of Nets Fraud Ensemble consists of multiple models working together to analyse each individual transaction within ten milliseconds – the time frame in which a transaction can be safely blocked. The solution learns from the results of its analysis and adjusts accordingly, meaning the longer that it is operational the more fraudulent transactions are blocked, and the fewer false positives are granted.

Fighting Fraud with a Model of Models is available to download free of charge from the Nets website.


The European fraud landscape

  • With the total annual value of fraudulent transactions across Europe hitting €1.8 billion, the need to step up fraud prevention has never been greater.
  • Card-not-present fraud now represents almost 80% of the total volume of fraudulent card transactions across Europe.
  • UK banks and card companies prevented £1.66 billion in unauthorised fraud in 2018 alone. This represents incidents that were detected and prevented by firms and is equivalent to £2 in every £3 of attempted fraud being stopped.


About the Nets Group:
At Nets, we see easier products and solutions as the foundation for growth and progress – both in commerce and society. With headquarters in Copenhagen, Denmark, and more than 4,000 employees located across Europe, we help financial institutions, businesses and merchants across Europe make tomorrow a little easier for their customers while delivering unrivalled security and stability. Powering payment solutions for an easier tomorrow.


About KPMG Denmark
KPMG is a global network of professional services firms providing advisory, audit and tax services. KPMG member firms operate in 147 countries, collectively employing more than 219,000 people around the world. By combining deep local insights and strong global perspectives, we create long-term value by responsible use of technology with humans at the centre.

KPMG works for a diverse range of clients including business corporations, governments and public sector agencies and not-for-profit organisations and start-ups. KPMG in Denmark is one of the fastest- growing professional services firms on Danish ground, with a revenue of close to DKK 830m in FY19. We are more than 700 employees and partners working closely together across our offices in Copenhagen, Kolding, Aarhus and Aalborg.

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