Patent-pending innovation acts as intelligent cruise control for fraud and risk teams

Sift, the AI-powered fraud platform securing digital trust for leading global businesses, introduced RiskWatch, a patent-pending innovation that simplifies risk decisioning for digital companies. RiskWatch automatically maintains block, friction, and manual review rates to a target percentage of the riskiest users while dynamically adjusting to changes in fraud activity, seasonality, and market expansion.

Fraud prevention strategies historically require one of two scenarios: relying purely on risk scores, which can lead to wild swings in block and review rates; and employing static percentile thresholds, which require constant monitoring to avoid blocking legitimate activity and permitting high rates of fraud.

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In contrast, RiskWatch leverages AI to automatically account for changes in user behavior patterns in real time, during fraud attacks or other dramatic shifts, with block rates adapting to capture additional risky events as they occur. As attacks conclude, risk thresholds return to pre-fraud levels that can be easily adjusted.

This innovation is especially valuable for companies that must adhere to the Payment Services Directive (PSD2) and other strong authentication standards. By using RiskWatch, those companies can, for example, more selectively and efficiently optimize exemptions for 3D Secure authentication (3DS).

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One Sift customer, a global crypto exchange, was launching into new and rapidly shifting markets, with the goal of maintaining stable block and acceptance rates for transactions. As the firm expanded, this process became increasingly difficult, which was reflected in their fluctuating block rates. With RiskWatch, the fraud team no longer had to manually analyze and adjust their risk thresholds. This more accurate and streamlined approach helped the company increase and stabilize their acceptance rates, unlocking $19M in new revenue during a single quarter.

“Gen AI and other factors are contributing to massive increases in fraud attack volumes and enabling fraudsters to evolve their techniques to mimic legitimate consumer identities and behaviors,” said Raviv Levi, Sift’s Chief Product Officer. “Companies that are battling AI-powered fraud and relying on manual thresholds are not able to adapt fast enough. RiskWatch adapts to changes automatically and enables business growth while maintaining both the consumer experience and a high level of control for risk teams.”

RiskWatch is immediately available for Sift customers that leverage Sift for account creation, account takeover, content, payment, policy, and chargeback fraud.