Leveraging Machine-Learning Algorithms, ComplyAdvantage Tackles Payment Fraud

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  • Criminals are exploiting various technological avenues to defraud people.
  • ComplyAdvantage has launched Fraud Detection, a solution that uses machine learning to detect and prevent transaction-related fraud.
  • The product identifies over 50 prevalent payment fraud scenarios faced by banks and financial institutions.
  • It can also detect “unknown unknowns” that don’t match current rule-based scenarios.
  • When suspicious activity is detected, businesses receive alerts with detailed explanations.
  • Fraud Detection sets itself apart by offering a streamlined transaction resolution process.
  • Holvi, a digital banking service for small businesses, uses Fraud Detection as part of its risk detection approach.
  • Fraud Detection uses AI and machine learning algorithms to monitor events and identify possible risks.
  • It combines financial and non-financial data with natural language processing and location/time analysis.
  • The solution helps institutions establish a strong defense against fraud, protecting customers and reducing losses.

Main AI News:

Criminals today have an abundance of opportunities to deceive and defraud individuals, thanks to the rapid expansion of technological advancements, including instant messaging and innovative remittance methods such as peer-to-peer (P2P) and real-time payments.

Recognizing this escalating challenge, ComplyAdvantage, the foremost authority in financial crime intelligence, is proud to unveil its latest offering, Fraud Detection. This cutting-edge solution harnesses the power of machine learning algorithms to combat the ever-growing threat of transaction-related fraud.

Oliver Furniss, Chief Product Officer for ComplyAdvantage, emphasizes the urgency of addressing this issue: “Fraudsters are nimble and inventive, continuously seeking new vulnerabilities to exploit. Fraud remains one of the most prevalent crimes affecting individuals on a daily basis, resulting in substantial losses for both consumers and businesses.”

Financial institutions, including banks, perpetually find themselves playing catch-up to combat these malevolent activities. However, Fraud Detection provides them with a potent new approach to monitor the countless transactions they handle each day, swiftly halting criminal endeavors in their tracks.

Thwarting a Range of Payment Fraud Scenarios

Fraud Detection meticulously identifies more than 50 of the most widespread payment fraud scenarios faced by banks and financial institutions during the processing of their voluminous daily transactions. This remarkable product effectively detects and flags fraud typologies, including Account Take Over (ATO), Authorised Push Payment Fraud (APP), Synthetic Identity, and Relationship Fraud.

Moreover, Fraud Detection possesses advanced capabilities to uncover “unknown unknowns”—fraud typologies that defy current rule-based scenarios.

When a business receives an alert regarding suspicious activity, they are provided with a comprehensive explanation, streamlining the resolution process for the transaction. For instance, a flagged transaction might be the result of a failed password attempt or occur at an unusual time, considering the customer’s location.

This distinctive feature sets ComplyAdvantage’s Fraud Detection apart from its competitors in the market.

Holvi, the digital banking service catering to small businesses, incorporates Fraud Detection as a crucial element within its comprehensive financial crime risk detection approach powered by ComplyAdvantage.

Valentina Butera, Head of AML and AFC Operations at Holvi, attests to the effectiveness of this solution: “Digital banking offers convenience for both customers and criminals. Technology evolves rapidly, and so do fraudsters. Therefore, the decision to adopt Fraud Detection by ComplyAdvantage was an easy one for us. We immediately recognized its utilization of state-of-the-art machine learning technology and anticipated a seamless implementation process.”

Leveraging AI and Machine Learning in the Battle against Crime

Fraud Detection leverages the capabilities of artificial intelligence (AI) and machine learning algorithms to monitor monetary and non-monetary events, identifying patterns that indicate potential risks. This includes employing identity clustering, which employs behavioral and personal characteristics to identify accounts controlled by a single individual, among other techniques.

By combining financial and non-financial events with natural language processing and machine learning, Fraud Detection harnesses the power of location and time data to identify suspicious transactions in real-time.

Furniss reiterates the importance of integrity in maintaining a functional and successful financial system: “Institutions must be confident that the transactions they facilitate are lawful. Our Fraud Detection solution empowers payment providers, banks, and other institutions to establish a robust first line of defense, safeguarding their customers and mitigating the stress and losses inflicted by criminals.”


The launch of ComplyAdvantage’s Fraud Detection solution represents a significant development in the market for financial crime intelligence. By harnessing the power of machine learning algorithms, this advanced solution enables banks and financial institutions to proactively detect and prevent transaction-related fraud.

With the ability to identify both known and unknown fraud typologies, streamline transaction resolution, and leverage AI and machine learning for risk monitoring, Fraud Detection empowers businesses to safeguard their customers, mitigate losses, and establish a robust first line of defense against the ever-evolving tactics of fraudsters. This marks a pivotal step forward in ensuring the integrity and security of the financial system, benefiting both consumers and businesses alike.



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