Bank of Nova Scotia will be using Nestor Inc.'s Prism CardAlert system to combat credit card fraud, Nestor announced.
"Our goal is to protect our card customers against fraud by using the best technology available," said Walter Kalichuk, chief security officer at Toronto-based Scotiabank. "With Prism, we can dynamically update the fraud detection model and ... catch fraud earlier while maintaining complete control over our fraud operations."
CardAlert is a type of neural network system, which scans transaction data and through "learned patterns" can identify those with a high probability of fraud.
"Traditional risk management systems are static and provide satisfactory performance when installed. Over time the performance deteriorates because the fraud patterns have changed but the fraud detection model hasn't," said Sushmito Ghosh, Nestor's vice president of financial solutions. "Nestor's neural technology is unique in its ability to learn dynamic fraud patterns incrementally."