The Problem

Fraud costs businesses $42 billion annually. Traditional rule-based systems have high false positive rates (up to 70%), blocking legitimate customers and reducing revenue.

The Solution

An AI platform that analyzes transaction patterns, user behavior, and risk signals in real-time to identify fraud with high accuracy while minimizing false positives.

Key Features

  • Real-time transaction scoring
  • Behavioral analysis algorithms
  • Adaptive learning models
  • False positive optimization
  • Regulatory compliance reporting

Technical Requirements

Real-time ML inference
Anomaly detection algorithms
High-performance computing
Payment system integrations
Compliance and audit trails

Competitive Advantage

Focus on reducing false positives while maintaining security, addressing the main pain point of existing solutions.

Market Validation

Demand Indicators

  • Growing online fraud rates
  • Increasing e-commerce transactions
  • Regulatory pressure for fraud prevention

Competitor Analysis

Stripe Radar, Sift focus on large merchants; opportunity for SMB-focused solution

Implementation Roadmap

MVP Features

Basic transaction scoringSimple rule engineAlert system

Development Steps

  1. 1 Build ML fraud models
  2. 2 Create real-time scoring engine
  3. 3 Develop integration APIs
  4. 4 Build admin dashboard
  5. 5 Add compliance features