How AI Can Help Detect And Prevent Credit Card Fraud

If you’ve ever been the victim of credit card fraud, or are a financial institution who’s been victimized, you know how painful and debilitating it can be to recover. But while it’s nearly impossible to completely eliminate card fraud, recent developments in artificial intelligence (Ai) software have helped drastically improve the protections for financial institutions, card issuers, and consumers.

What is Card Fraud?

Card fraud is fraud committed using a payment card, such as a credit or debit card. Goods, services, or money are obtained by acquiring account information from victims, then utilizing it for fraudulent transactions. The most common type of credit card fraud is via online purchases where the card is not present (CNP) and through the banking system, with criminals stealing and using personally identifiable information (PII) to access accounts and transfer money, or to open new accounts under the stolen PII.

What Businesses Are Affected by Credit Fraud?

Unfortunately, every business that deals in e-commerce, accepts electronic payments, or conducts digital financial transactions is susceptible to card fraud. Some of the most common industries that must implement fraud detection software are:

Financial Institutions:

While consumers are generally shielded from liability for unauthorized transactions on their cards, financial institutions generally are not. Because of a combination of federal law and issuer/card network policy, FIs and merchants bear the financial brunt of these crimes.

In 2020 alone, card issuers were liable for 88% of the fraud losses. Real time operating artificial intelligence solutions to fraud detection and prevention has the potential to reduce this astronomical financial burden.


Many scammers use fraudulently obtained card information to purchase airline tickets or services. Real-time fraud detection and prevention software, powered by Ai, can help eliminate these kinds of frauds before they complete.

Retail and Online Sales

Online marketplaces are the most common place where credit card fraud occurs. Credit card fraud detection, powered by real-time Ai, can help notify the card issuer when potentially fraudulent activity is detected, as the transaction is occurring. This can help halt a transaction, protecting both the issuer and the merchant.


Rideshare companies, for example, use electronic and automated software that allows for fraudulent purchases. Fraudsters can use bank or card information they do not own, with PII stolen from the dark web, to make fraudulent purchases through rideshare companies. Credit card fraud detection and prevention systems, powered by real-time Ai could inform the issuer and/or FI of the fraud in real time… while the fraudster is still in the car!

These are only a fraction of the industries that have a need for fraud detection software. In fact, all industries that conduct digital transactions are in desperate need of a fraud detection and prevention system that works.

Sadly, in our technologically advanced marketplaces, it is rather easy to steal someone’s PII and use it to make fraudulent purchases or open new accounts. Worse, many financial institutions, card issues and consumers do not know they’ve been on the receiving end of card fraud until after the event.

But it doesn’t’ have to be this way.

How can financial institutions and card issuers, those who bear the brunt of the monetary losses, help reduce credit card fraud and its associated costs?

ToolCASE’s fraud prevention and detection system, powered by real-time AI, has helped financial institutions greatly reduce their exposure to card fraud, and mitigate the risk of massive financial losses.

By combining cutting-edge, real-time fraud detection software with active and automated systems that are purpose developed to assist risk and fraud teams, ToolCASE is now the world’s leading transactional fraud detection and prevention company.

Unlike traditional fraud detection, which analyzes batched data, the fraud detection software provided by ToolCASE compiles and examines millions of data points in real-time, alerting risk and fraud teams to potential threats as they’re happening, rather “discovering” the fraud after the fact in the batch data.

Contact ToolCASE for a full demonstration of its remarkable card fraud detection and prevention capabilities, HERE