Feasibility study for fraud detection in instant payment transactions

van den Berg AG (vdB) offers various solutions for payment transactions, which also include services for instant payment transactions. As this type of payment is relatively new, there is in general little experience as to whether the fraud attempts and fraud cases differ in their characteristics and procedures from the familiar patterns in SEPA payments. Furthermore, preliminary work has shown that the currently practised approaches of fraud detection can only be partly transferred to instant payment, as these practices include manual rework for many suspicious cases, which is not possible in instant payments due to the short transaction time of less than 10 seconds.

Against the background described above, the Chair of Business Informatics conducts a feasibility analysis to determine which approaches to fraud detection are particularly suitable and meaningful for instant payment, whether it is possible to implement a fraud detection solution on the basis of these approaches, and which research topics result from this, in particular for the use of artificial intelligence.

The project initially comprises four main activities:

  1. Procurement and generation of test data
  2. Analysis of literature and, if applicable, patents in the field of fraud detection
  3. Design of a test environment for testing fraud detection methods
  4. Test of selected methods