US-based e-payments giant Stripe has launched a new set of machine learning-based fraud prevention tools called Radar.
The platform is able to process data from the multitude of businesses processing transactions on the Stripe network every second, as well as signals from Stripe’s financial partners to analyse and fish out fraud.
Radar is integrated into the user’s Stripe account and requires no additional installation. The tools are built upon Stripe’s machine learning algorithms, which include a smartly prioritised list of flagged charges and an ability to preview and set custom rules (without any code or engineering work).
Additionally, it has functions such as traditional fraud checks, like card verification code and address verification.
Stripe claims that during its beta trial, Radar was able to block out more than US$40 million in attempted fraudulent transactions for non-profit organisation Watsi.
“With Stripe Radar, businesses essentially have caller ID for incoming charges,” said John Collison, President and co-founder of Stripe, in an official press statement.
“Stripe’s behaviour network uses machine learning to learn from hundreds of thousands of businesses around the world running on Stripe, as well as signals from our financial partners. Because of this network, Stripe Radar can effectively spot patterns and detect fraud, protecting every Stripe user from the moment their first charge comes in.”
Launched in 2011, Stripe is backed to the tune of US$300 million — with a valuation of over US$5 billion — by investors including Sequoia Capital, Andreessen Horowitz, General Catalyst, Elon Musk and Peter Thiel.
It was officially launched in Singapore in last month. Several Singapore-based startups including Grab, 99.co, Tradegecko and GuavaPass have already onboarded its suite of services.
Image Credit: Stripe