Rapid-I and SmartSoft efficiently prevent fraud with OEM partnership

RapidMiner’s integration into the solution Sentinel Prevention makes fraud detection possible for the financial sector in real time

Rapid-I, a leading provider of open source solutions for predictive analytics, data mining and text mining, has concluded an OEM partnership with SmartSoft, a provider of solutions for preventing fraud, money laundering and risks in financial institutions. In the context of this cooperation, SmartSoft has integrated RapidMiner into its solution Sentinel Prevention for fraud detection and prevention at financial institutions. Through being extended to include RapidMiner, the embedded solution is now able to display additional fraud indicators directly in the users’ usual work environment based on statistical forecasts and therefore generate higher detection rates in the case of user behaviour that deviates from the norm.

The joint solution detects activities early on which could suggest misuse, such as atypical patterns in the withdrawal of money, and classifies these as potential fraud. Based on statistical forecasts, RapidMiner makes a risk assessment here, which is used as a parameter or indicator in the rules for fraud detection. As well displaying such fraud indicators, Sentinel Prevention now also allows these parameters to be used in detection rules, therefore enables a real-time analysis and reaction offering an effective preventive protection against fraudulent activities. The system adapts autonomously to the normal activity of a user or user group and raises the alarm whenever behaviour suddenly changes in individual cases.

Thanks to the integration of RapidMiner into our solution we can address the most urgent requirements of our customers in the financial sector in a more targeted manner, explains Hubert Arias, Business Development Director at SmartSoft. The early detection of fraud is one of the most important tasks in this area when it comes to avoiding millions in damages. RapidMiner helps us identify deviating behavior in real time and adapts the rules for fraud detection better and better to the specific individual case, meaning the accuracy of the analyses increases.

Some of the largest banks and associations in America are already using the SmartSoft solution for fraud detection and prevention. Sentinel Prevention prevents losses caused by fraudulent transactions in connection with credit, debit, account or other prepaid cards over the most varied of channels, including point of sale (POS), ATM machine, internet, online banking, credit card payment and mobile banking. For each of these cases Sentinel Prevention provides special tools for card issuers and acquirers which protect them from fraud in real time, online or in batch processing.

Our partnership with SmartSoft is important for us in several respects. As an OEM partner, SmartSoft impressively demonstrates the benefit of embedding our innovative solutions into proprietary systems, as a result, making these more intelligent, explains Dr. Ingo Mierswa, managing director of Rapid-I. On the other hand, we are pushing our global expansion forward in this way and our partnership is opening the door to us to the FSI sector.

Information about SmartSoft
SmartSoft develops and implements solutions for financial enterprises to prevent fraud and money laundering and minimise risks. The enterprise offers intelligent technologies based on models for advanced statistics and artificial intelligence. These include expert systems, rule engines, neural networks and decision trees, with which unusual customer activities are identified. SmartSoft was founded in 2002 and has made a name for itself in the region as a pioneer in the development of expert systems based on artificial intelligence. SmartSoft has branches in Mexico City, Delaware (USA) and San José (Costa Rica). For further information go to: www.smartsoftint.com