A hybrid AI Approach to Tackling Fraud, by Roy Prayikulam, Senior Vice President Risk and Fraud at INFORM and Kevin Nagel, Data Scientist at INFORM. *MLSEV 2020: Virtual Conference.

1. 2nd edition

2. #MLSEV 2
A Hybrid Approach
To Tackling Fraud
Roy Prayikulam, Senior Vice President
Kevin Nagel, Data Scientist
INFORM // Risk & Fraud Division

3. #MLSEV 3
Aachen, Germany
Atlanta, USA
Sydney, Australia
1,000+ Clients
worldwide
800+ Staff
from more than 30 nations

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FIGHTING FINANCIAL CRIME WITH
PINPOINT ACCURACY

5. #MLSEV 5
MANAGE RISK & FIGHT FRAUD
WITH PINPOINT ACCURACY
Payments
Multi-channel banking
fraud prevention and
internal fraud detection
Cards & Merchants
Merchant fraud protection, risk-
based authentication, and
card scheme compliance
Insurance
Optimizing claims handling
process, fraud detection, medical
billing, and underwriting
AML Compliance
KYC/CDD, AML transaction
monitoring, sanctions and
terrorist financing detection

6. #MLSEV 6
✓
MATTER OF MILISECONDS
AUTHORIZATION
IP
Creating a Digital
Fingerprint of Your
Customer

7. #MLSEV 7
MATTER OF MILISECONDS
AUTHORIZATION
IP
Creating a Digital
Fingerprint of Your
Customer
✘

8. #MLSEV 8
HYBRID AI FOR
IMPROVED DECISION MAKING

9. #MLSEV 9
▪ Agile Optimization
▪ Domain Expertise
▪ Human Readable
Knowledge
Base

10. #MLSEV 10
Machine
Learning
Big Data
Knowledge Discovery
Automated Learning

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Know-how
Driven AI
Operations Research
Fuzzy Logic
Expert know-how
Agile response
Data
Driven AI
Predictive Analytics
Machine Learning
Hidden Pattern Detection
Continuous Evolution
Hybrid AI
for Risk Management

12. #MLSEV 12
RISKSHIELD + BIGML = RISKSHIELD ML

13. #MLSEV 13
Stream
Processing
Dynamic
Profiling
Adaptive
Rulesets
Decision
Engine

14. #MLSEV 14
Integration /
Automation
Data
Transformation
Out-of-Box
ML Models
Performance
Evaluation

15. #MLSEV 15
RISKSHIELD BIGML

16. #MLSEV 16

17. #MLSEV 17
SMART ALGORITHMS
LEARN AND ADAPT

18. #MLSEV 18
FP
TP
TN
FN
LEGAL FRAUD
LEGAL
FRAUD
PREDICTION
ACTUAL

19. #MLSEV 19

20. #MLSEV 20

21. #MLSEV 21

22. #MLSEV 22
SOURCE DATASET MODEL PREDICTION
SOURCE DATASET MODEL PREDICTION
N D J
N D J F
UPDATE DATA
Evolving Model

23. #MLSEV 23
SOURCE
DATASET PREDICTION
PREDICTION
PREDICTION
DATASET
DATASET
DATASET
MODEL
MODEL
MODEL
Dynamic Ensemble
DATASET
DATASET
DATASET
LOGISTIC
REGRESSION
N D J F
N D J F
UPDATE
WEIGHT
N D J F

24. #MLSEV 24
FP
TP
TN
FN
FP
TP
TN
FN
LEARN &
ADAPT
WORLD
CHANGES

25. #MLSEV 25
RiskShield ML Features
1. Comprehensive Fraud Engine
2. Highest Performance
3. Superior Detection Technology
4. Adaptability & Transparency
5. Easy Implementation & Future Proof

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Summary
1. The Financial Crime environment is highly adaptable
2. The combination of knowledge based and machine
learning models delivers better results
3. Agile Optimisation is Smart, Rapid, and Interactive

27. #MLSEV 27
Thank You
For Your Attention
ml.riskshield.com