Jay Nanduri - General Manager and Distinguished Engineer
We are pleased to announce the Dynamics 365 Fraud Protection public preview is now available! With Dynamics 365 Fraud Protection we’re providing a cloud-based service for online merchants to help increase revenue, lower fraud-related costs, and improve customer experience. In this release, Fraud Protection preview supports payment fraud detection and account creation protection.
Like many other ecommerce merchants at Microsoft, both our in-store and online channels have been hit by high fraud costs during our retail digital transformation over the past few years. With the large variety of products, diverse buying experiences, and the scale of our operation, we couldn’t find a vendor to meet our needs, so we designed a solution in house. Our internal solution helps protect against payment fraud and much more. At the heart of the system, the solution focuses on finding the right balance between reducing fraudulent transactions without blocking legitimate transactions we receive from our customers. It has been nominated by The Institute for Operations Research and the Management Sciences (INFORMS) as a finalist for the 2019 Franz Edelman Award—an international award for achievement in advanced analytics and operations research. The solution we delivered for Microsoft is the basis for the technology that we are now commercializing.
Our approach with Dynamics 365 Fraud Protection combines our expertise as a merchant, with our world-class AI and fraud protection technology, and a depth of valuable data. With this product we’re focused on helping customers achieve three outcomes:
- Help lower fraud-related costs through the fraud protection network, our connected knowledge graph, and advanced AI that adapts to the changing fraud landscape. The product builds a graph of data that provides a view of suspected fraudulent behavior across participating Fraud Protection customers while still helping to protect the privacy of shoppers and the competitive intelligence of merchants. As a result, Fraud Protection customers can get increasingly accurate fraud assessments delivered by advanced adaptive AI that uses both their own real-time data and that of the connected graph.
- Help increase revenue through innovative bank and issuer partnerships that share fraud related information which can help increase acceptance rates for legitimate transactions.
- Create a better customer experience by reducing wrongful rejections and lowering friction during the buying experience. If a legitimate transaction gets blocked, we provide tools to help your customer support team quickly resolve the problem.
Get started with a fraud diagnosis
In early feedback from customers, we learned many are frustrated that the only way they can get a sense of whether a fraud prevention vendor may help them is to run a long proof of concept. While this is often the best evaluation approach, it’s also time consuming and comes with hard-to-justify expenses. For this reason, one of the differentiated experiences in Fraud Protection is the ability to preview the product’s capability to detect fraud in your business using your data, through the diagnose experience. By uploading historical data into Fraud Protection, the product will present an AI-driven analysis of the fraud-protection and revenue opportunities. This provides you with a way of helping to justify the investment in a proof of concept.
Do a real-time evaluation through API integration
After doing a diagnosis, you should have an initial understanding of the opportunity to improve your fraud protection. At this stage, we typically recommend that you proceed with a deeper evaluation of the product using more of the product’s features. You can start by implementing our device fingerprinting on your ecommerce portals and sending real-time transactions to the Fraud Protection APIs, so those transactions can be assessed for fraud risk. Our detailed KPI dashboards will help you shadow-test Fraud Protection relative to your incumbent solution. Your fraud analysts can use the AI-based virtual fraud analyst to help them set the right operating point to optimize the balance between fraud detection rate and false positives. Finally, when you are comfortable with the product’s performance in your business, you can enter the protection experience where you can further evaluate the product’s risk assessment in your purchase flows, and optionally choose to send trust knowledge to issuing banks to help improve acceptance rates.
Both of the above marquee features, diagnosis and the virtual fraud analyst, and many more, can be experienced today in the newly available preview. If you want to get a better understanding of how Microsoft might help you improve fraud detection in your ecommerce business, request the Dynamics 365 Fraud Protection preview to get started!
More resources to explore
- Learn more about Dynamics 365 Fraud Protection in the April ’19 release notes.
- Stay connected and read about how to get started
- Engage with us in the Dynamics 365 community