Payment Processor Conquers Alert Fatigue with 95% Alert Reduction
Strategic rule optimization, anomaly detection, and merchant segmentation transform alert fatigue into precision monitoring, eliminating thousands of daily alerts for this global payment processor.
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Global Financial Services and Payment Processing Company
This Ireland-based financial services company specializes in multicurrency payments, credit card processing, hospitality and retail software, and VAT refund management for tourists. Operating in 64 markets across 5 continents with over 2,500 employees worldwide, they serve overseas visitors, international retail groups, hotels, and banks as one of the largest tax refund providers globally.
- Operates across 64 markets on 5 continents.
- Services 800,000 merchants across multiple industries.
- Processes millions in credit card, multicurrency, and tax payments daily.
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Drowning in Thousands of Daily Alerts
The company faced a critical problem that threatened both operational efficiency and risk management. Their existing rule set generated over 5,000 alerts daily across thousands of merchants, but limited resources allowed them to review only a small percentage, stretching their team thin while exposing the business to significant risk.
Their primary focus was on monitoring merchant behavior to detect suspicious activity, such as fraudulent chargebacks or refunds. However, their static rule set couldn't differentiate between seasonality and industry-specific patterns of merchant behavior, leading to the massive over-generation of alerts that buried genuine threats in noise.
Enterprise-Grade Risk Management
Through a combination of rule optimization, anomaly detection, and intelligent segmentation, FraudNet reduced the client's alerts, increased efficiency, and reduced analyst burnout while maintaining robust merchant oversight.
Continuous Optimization Framework
An iterative optimization process continuously assessed and refined rule sets, automations, and segmentation models, ensuring the system continuously improved as merchant behaviors evolved and new patterns emerged, maintaining optimal performance over time.
Merchant Activity Segmentation
Advanced RFM analysis (Recency, Frequency, Monetary value) to enrich merchant data and group them by transaction volume, velocity, and value. These were applied to filter out low-impact alerts and prioritize investigations on higher-value, higher-exposure merchants, reducing alert fatigue.
Anomaly Detection and Policy Monitoring
FraudNet’s intelligence engine assessed each merchant's unique behavior patterns and set dynamic thresholds based on individual activity profiles, dramatically increasing alert accuracy and relevancy while adapting to legitimate seasonal and industry-specific patterns.
Strategic Rule Set Optimization
Comprehensive analysis identified what specific goals the payments company wanted to achieve with existing rules. Through systematic prototyping of rule sets, the worst-performing rules, which generated the most noise, were eliminated, and the remaining rules were optimized to cover critical scenarios.
Increased Efficiency with Reduced Alerts
FraudNet’s phased approach transformed the company's merchant monitoring from overwhelming alert volume to precise, actionable intelligence.
FraudNet didn't just reduce our alerts; they transformed how we think about merchant monitoring. Moving from 5,000 daily alerts to a manageable and meaningful set freed our team to focus on actual risks rather than being overwhelmed by false positives. The anomaly detection and segmentation capabilities gave us precision we never had with static rules.
Head of Risk Operations
Intelligent Automation That Learns and Adapts
FraudNet’s phased approach and adaptive technology addressed the root causes of alert fatigue while maintaining robust oversight of merchants.
Increased Efficiency with Reduced Alerts
FraudNet’s phased approach transformed the company's merchant monitoring from overwhelming alert volume to precise, actionable intelligence.
99%
improvement in review efficiency
5,000
fewer daily alerts
95%
reduction in monthly alert volume
Intelligent Automation That Learns and Adapts
FraudNet’s phased approach and adaptive technology addressed the root causes of alert fatigue while maintaining robust oversight of merchants.
