Reducing Payment Fraud Through Modernization

Payment scams continues to afflict the monetary services market.  According to the American Bankers Association, scams versus bank bank account amounted to $25.1 billion in 2018[1].  In 2022, 8 U.S. Senators corresponded to the CEOs of 7 of the biggest U.S. banks worrying scams at one real-time payment company.  With real-time payments growing worldwide by 41% in 2020[2], there is an apparent requirement to update scams avoidance as lawbreakers attempt to make use of the system.

To aid fight payment scams, business are purchasing innovation that leverages hybrid cloud architectures and AI / ML.  In a hybrid cloud, calculate work can be spread out throughout on-premise information centers, personal clouds, public clouds and even edge places depending upon requirements such as information sovereignty, latency, capability, expense and more.  Advances in AI / ML, enable devices to be trained to acknowledge patterns throughout billions or trillions of information points.  These relationships are then integrated into “models”  which are constructed into real-time payment workflows.

One hybrid architectural pattern is for high personal privacy payments facilities to stay on-premise with the general public cloud being utilized for design training.  By utilizing the general public cloud, companies can parallelize training throughout a huge variety of nodes, just spend for time utilized and have access to hardware velocity such as GPUs.  To secure personal privacy or enhance information quality, companies can produce artificial information which is moved to the cloud and utilized for training.  Trained designs are then imported into a company’s runtime environment where they perform on-premise with regional access to personal privacy information.

For worldwide banks, information sovereignty requirements may determine another architectural pattern that keeps payment and scams information in the stemming nation.  With federated knowing, a single structure design is produced centrally and dispersed to remote websites.  These websites then train the design on their regional, personal information prior to sending their design, without personal privacy information, back to the main website.  The designs are then aggregated into a brand-new worldwide design that can then be sent out to the remote websites for more iterative rounds of training.  Once the design is totally trained, designs run in your area without ever needing to move personal privacy information outside a regulative jurisdiction.

While architectures will differ based upon requirements, banks will all concur that running these work at scale needs a contemporary platform that leverages the hybrid cloud, enhances functional effectiveness, decreases functional threats and assists enhance the security posture.  With a platform such as Red Hat OpenShift, companies can effectively construct, update and release applications with a constant experience both on-premise and in the cloud.  As organization requires progress, work can then be moved in between on-premise servers or those performing at Amazon AWS, IBM FS Cloud, Microsoft Azure or Google Cloud. To find out more, check out Red Hat

– Aric Rosenbaum, Chief Technologist, Red Hat

Aric Rosenbaum works as the Chief Technologist on Red Hat’s Global FSI group, where he assists customers satisfy their tactical concerns through making use of open source innovation. Prior to signing up with Red Hat, he led big, digital improvement tasks at Goldman Sachs’ Investment Management Division and was co-founder/CTO of numerous FinTechs in equity and FX trading.

[1] American Bankers Association: 2019 Deposit Account Fraud Summary

[2] ACI Worldwide Research


A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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