NICE Actimize launches PSD2 fraud profiling tool
With Payment Services Directive (PSD2) compliance deadlines looming in September 2019, NICE Actimize has introduced a fraud profiling solution for PSD2 compliance and beyond, which is now also available as a SaaS solution.
The company says that the purpose-built secure cloud solution enables faster deployment and lower total cost of ownership, bringing sophisticated fraud analytics to all sizes of financial institutions.
The Actimize cloud-based offering provides end-to-end fraud management capabilities with real-time transaction risk analysis (TRA), cross-channel fraud detection, and multi-payment coverage, as well as fraud alert and case management functionality. The fraud profiling solution for PSD2 compliance combines expert-driven models and machine learning algorithms to produce what the company says is the best possible risk score with the lowest rate of false positives.
Recently in the EU, the deadline passed for payment service providers (PSPs) to have their Payment Services Directive (PSD2) APIs available for external testing. FIs are now faced with meeting the full requirements for a 14 September live date for these APIs. Alongside this, the additional requirement of Strong Customer Authentication (SCA) adds further friction that firms will want to reduce. This means some serious catch-up for those who missed the first benchmark, while presenting challenges for mid-sized institutions with fewer resources available to implement the process.
NICE Actimize says that its fraud profiling solution for PSD2 compliance offers the following benefits:
- Provides a real-time risk score for every payment transaction and enables automated decision making on alerting, delaying, and blocking, for example.
- Reduces the need for SCA through risk-based authentication controls and low fraud rates.
- Allows FIs to meet PSD2 Fraud Reporting requirements and PSD2 profiling compliance under Articles 2 and 18 without significant build and IT investments.