IWI and PKSHA ― First to realize fraudulent data sharing and collaborated to develop “FARIS Shared Scoring Service Powered by PKSHA Security” across payment card industry

Intelligent Wave Inc.（Head office: Chuo-ku, Tokyo; Representative Director, CEO: Kunimitsu Sato; hereinafter: IWI）、PKSHA Technology Inc.（Head office: Bunkyo-Ku, Tokyo; CEO：Katsuya Uenoyama; hereinafter: PKSHA）are pleased to announce “FARIS Shared Scoring Service Powered by PKSHA Security.” The service is scheduled to launch in June 2023 and will be gradually expanded to the entire payment card industry.

【Development background of “FARIS Shared Scoring Service”】
The amount of damage caused by credit card fraud continues to increase every year. According to Japan Consumer Credit Association, the amount of fraudulent use was approximately 20.6 billion yen in the six months from January to June 2022, a larger increase than the 33 billion yen in annual fraudulent use in 2021, the worst year on record*1. In recent years, an increasing number of credit card companies have adopted a scoring system to detect suspicious transactions by assigning scores to each transaction.
*1 reference：Japan Consumer Credit Association, (March 2022) “Incidents of Credit Card Fraud” (Japanese)

Conventionally, measures of payment card fraud prevention, including scoring, are performed by individual credit card companies. As a result, only the fraudulent methods detected by individual companies can be learned. However, increasingly sophisticated fraud makes it difficult for the companies to prevent fraud individually.  

The payment card industry needs to work together to combat the crime of card fraud.

With this background, IWI and PKSHA have decided to collaborate to develop "FARIS Shared Scoring Service Powered by PKSHA Security," a fraud detection service that enables data sharing among companies regarding card fraud techniques and prevents fraud, and to further strengthen measures against card fraud in a cashless society.

【About IWI and PKSHA's Partnership】
The development of this service was made practical through the collaboration of IWI, which has a wealth of experience in fraud detection system implementation and a service infrastructure that enables the shared use of score models*2, and PKSHA, which has the largest market share in fraud detection scoring for credit card issuers in Japan.
*2  SaaS-based fraud detection system 「IFINDS」

【Features of FARIS Sharing Scoring Service】Reduce damage by 30% through fraudulent data sharing among companies

-Prevent damage by fraudulent data sharing among companies
    By sharing data on new fraudulent methods that have been handled by individual companies, the entire company can prevent more payment card fraud.
In fact, PoC tests of this service at several credit card companies have shown an average reduction of approximately 30% in fraudulent use compared to existing operational methods.

-Increasing companies installing the system will increase the accuracy of card fraud detection
　By shared scoring, as mentioned earlier, fraud that occurs at other companies can be learned as information to strengthen their anti-fraud measures, and as the number of companies adopting the system increases, the accuracy of fraudulent use detection will improve.

-Reduce workload of analytical work in scoring system
    Scoring using AI models requires AI analysis to maintain accuracy and quality. With this service, IWI performs the analysis work for scoring, reducing the burden on the person in charge of such analysis.

This technology will be used to support the common infrastructure for card fraud prevention announced by IWI and JCB:"IWI and JCB -Industry's First Collaboration　for Cross-Sector Anti-fraud Measures". Through these efforts, IWI and PKSHA will promote the strengthening of domestic anti-fraud measures.

【Comments on collaborative development】
The two companies commented on this collaborative development as follows:

Intelligent Wave Inc. Representative Director, CEO Kunimitsu Sato
“Stopping fraudulent card use is not just a business activity; it is also an essential activity for society to stop the crime. In this important activity, every member of the IWI development staff is working toward the goal of a society in which consumers can make cashless payments more safely and securely.

In this initiative, IWI, with its extensive experience in fraud detection systems, and PKSHA, with its advanced technology in risk detection AI, will collaborate to accelerate measures against credit card fraud. We plan to develop highly flexible and rapid solutions that take advantage of the strength of partnerships between companies in Japan.

Furthermore, we expect that the solution will contribute to the prevention of fraud not only in Japan but also around the world.”

PKSHA Technology Inc.  CEO Katsuya Uenoyama
“Since the foundation in 2012, PKSHA has researched and developed algorithms for natural language processing, machine learning, and deep learning technologies. Currently our developing software is in operation at 2,345 companies. One of the most important initiatives has been the research and development of PKSHA Security, a fraud detection algorithm solution that detects fraud in various areas, including credit card and insurance claims, since 2017. We are pleased to collaborate with IWI to provide advanced fraud detection systems to more card businesses, which is a big step forward in PKSHA's contribution to the reduction of fraudulent damage.

With our vision of "coevolution of people and software," we will continue to share and utilize information among user companies, improve the level of fraud detection, and work hard to realize safe payment transactions.

【About Intelligent Wave Inc.（IWI）】
IWI has developed systems for network connection　and credit card payment authentication for credit-card payment and  systems for preventing credit card fraud. The company earned the trust of its customers as a provider of payment systems that do not stop 24 hours a day, 365 days a year.
Based on the management philosophy, "Create security and convenience for the information society of the next generation," IWI supports the digital transformation of companies by providing a fast, secure, high-quality, and convenient IT infrastructure.

Company name：Intelligent Wave Inc.
Address：Kayabacho Tower, 1-21-2, Shinkawa, Chuo-ku, Tokyo 104-0033, Japan
Representative：Representative Director, CEO Kunimitsu Sato

【About PKSHA Technology Inc.（PKSHA）】
With the mission, "Shaping future software," PKSHA develops AI solutions and provides AI SaaS using machine learning and deep learning algorithms developed in-house to create future relationships between companies and their customers. The company provides solutions to our customers' issues based on a wide range of technologies, including automatic response using natural language processing, image/video recognition, and predictive modeling, as well as AI SaaS to solve common problems. We aim to create an affluent society where people and software co-evolve.
PKSHA corporate website

Company name：PKSHA Technology Inc.
Address：2-35-10 Hongo Bunkyo-Ku, 113-0033 Japan
Representative：CEO Katsuya Uenoyama