Alipay enhances AI-powered risk engine AlphaRisk to help businesses tackle fraud

Maria Nikolova

The enhanced AlphaRisk is able to respond to new risks detected within one second and complete automatic risk profile adjustments within one day through self-learning and model auto-refit.

Alipay, the open digital lifestyle platform operated by Ant Financial Services Group, has introduced an enhanced version of AI-powered risk engine AlphaRisk at the inaugural Alipay Risk & Security Tech Launch 2020.

Thanks to AlphaRisk, Alipay’s fraud loss rate has been kept under 0.64 in 10 million. This means that for every $10 million worth of payments, fraud induced loss is less than $0.64, which is significantly lower than industry average.

With four main features: AI Detection, Evolution, Perception and Auto Pilot, AlphaRisk offers real-time risk detection and management capabilities. It automatically analyzes fraud attempts and patterns to adjust risk profiles, and takes countermeasures on the fly. It is also able to detect new fraud patterns and automatically intervene.

The enhanced AlphaRisk is able to respond to new risks detected within one second and complete automatic risk profile adjustments within one day through self-learning and model auto-refit. Its Auto Pilot feature integrates more than 200 algorithms, which enables the system to automatically apply the best risk management strategy while ensuring seamless user experience.

“The pandemic has accelerated digital transformation across the globe. Businesses and services which can adapt quicker to this growing trend will be in a stronger position to serve customers. Meanwhile, rapid digitization also comes with new challenges in risk and security,” said Dr. Zhao Wenbiao, Vice President of Ant Group and Chief Scientist of Alipay Security Lab in his keynote speech. “Security, more now than ever, has to be the core infrastructure for digital businesses to ensure operational safety and reliability, while continuously improving user experience and performance.”

In addition to safeguarding user accounts, in 2019 alone, Alipay helped over 10,000 Independent Software Vendors (ISVs) and merchants deploy AlphaRisk. It has protected over RMB30 billion in funds from promotion abuse, a key challenge on the rise for digital businesses. In addition to the financial costs, promotion abuse can also damage brand reputation and the ability to acquire and retain real customers.

Alipay’s risk engine and technology have also been adopted by leading mobile financial services providers in the region, including GCash, the leading mobile wallet in the Philippines.

In China, thanks to AlphaRisk helping to keep the fraud loss rate low, since 2005, Alipay has been protecting its users with a 100% money back protection scheme in the unlikely event of unauthorized account use.

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