eBay's algorithms can identify 40% of credit card fraud transactions

"eBay scientists have published a report which says that it’s new AI algorithm can identify 40% of credit card fraud transactions with high precision. A significant finding for a sector which solely relies on technology for fraud detection.
As always there are two sides of the coin for any entity or method. In fraud detection also, the techniques and tools can either focus on good actors or bad actors. Till now it has been the former. Where the truth is that majority of transactions conducted are by good actors. So it was imperative to study the behaviour of good actors, in fact much more important than those of bad actors.
Hence eBay, rather than focusing on the changing patterns employed by bad actors to circumvent protective barriers, they decided to instead analyses instances of good behaviour.
San Jose-based eBay scientists Utkarsh Porwal and Smruthi Mukund noted that patterns of good behaviour do not change with time. The data points that represent this form of conduct have consistent spatial arrangements. Porwal and Mukund suggested a clustering method for identifying outliers and to later formulate a score, which would determine consistency and in turn, good behaviour."

Source:  Next Big What, 14th November 2018