Piers leads The ai Corporation in transforming fuel and mobility payments with AI-driven security, seamless transactions, and advanced fraud prevention strategies.
Piers, congratulations on your appointment as the new CEO of The ai Corporation. Can you share your vision for leading the organization into the fuel and mobility payments sector?
Our vision at The ai Corporation (ai) is to revolutionise the retail fuel and mobility sector with secure, efficient, and seamless payment solutions while leading the charge against transaction fraud. ai delivers unparalleled payment convenience and security to fuel retailers and mobility service providers, enhancing the customer journey and safeguarding financial transactions.
We believe in fuelling progress by simplifying transactions and powering every journey with trust and efficiency. In an era where mobility is a fundamental aspect of life, we strive to safeguard each transaction against fraud, giving our customers the freedom to move forward confidently. We achieve that by blending innovative technology and strategic partnerships and relentlessly focusing on customer experience:
Seamless Integration: We’ve developed an advanced payment system tailored for the fuel and mobility sector. By embracing technologies like EMV and RFID, we ensure contactless, swift, and smooth transactions that meet our customers’ needs. Our systems are designed to be intuitive, providing easy adoption and enhancing the customer journey at every touchpoint.
Unmatched Security: Our robust fraud detection framework is powered by cutting-edge AI, meticulously analysing transaction patterns to identify and combat fraud pre-emptively. We’re committed to providing retailers with the knowledge and tools to protect themselves and their customers, fostering an environment where security and vigilance are paramount.
With the increasing demand for sustainable fuels and EV charging, how do you plan to address potential fraud and fraudulent data collection methods in unmanned EV charging stations?
The emergence of new and the continued growth of existing sustainable fuels means our experts are constantly identifying potential risks and methods of exploitation proactively. The increase in unmanned sites is particularly challenging as we observe a steady rise in fraudulent activity that is not identifiable within payment data, such as false QR code fraud. In these circumstances, our close relationships with our fuel retail customers enable us to utilise additional data to identify at-risk areas and potential points of compromise to assist in the early mitigation of fraudulent activity.
Mobile wallets are on the rise in fleet management. How do you navigate the balance between convenience for users and the potential risks of fraud and exploitation associated with these payment methods?
When introducing any new payment instruments, it is critical to balance the convenience of the new service with the potential risk it presents. As with all fraud prevention strategies, a close relationship with our customers is vital in underpinning a robust fraud strategy that mitigates exposures, while retaining the benefits and convenience mobile wallets offer. Understanding the key advantages a fleet management application brings to the end user is vital for understanding potential exposure and subsequent exploitation. That information enables us to utilise one or multiple fraud detection methods at our disposal to mitigate potentially fraudulent activity whilst balancing convenience and flexibility.
The trend of Abuse of Genuine fraud is noticeable despite advancements in mobile wallet payments. How do your AI-driven scoring systems combat this complex fraud type in the industry?
Our teams identify Abuse of Genuine fraud by using enhanced behavioural profiling across extended periods and utilising sector-specific data in full to enable us to create a detailed and accurate profile for both payment instruments and vehicles. Industry-specific data, for example, from fleet odometers, is exceptionally valuable when you are developing a behavioural profile for a specific vehicle. Combined with other methods, this enables us to quickly identify areas of increased spending or a change of spending profile. That insight is vital when identifying Abuse of genuine fraud, as this type of fraud is often perpetrated for long periods of time and in very high volumes.
Opportunistic fraud and overclaiming by legitimate customers can inflate fraudulent values. How can businesses enhance confidence in point-of-compromise identification and distinguish genuine customer behavior from fraudulent activity?
The short answer is that businesses need to ensure that they are working with experts who understand fraud and understand the impact that false positives can have on a fraud strategy. Incorrectly identified fraudulent transactions affect bottom-line losses and can severely harm a business fraud strategy and AI Scoring Systems.
As a result, we firmly hold that visualising precise trend profiles and pinpointing potential compromise points are as critical as receiving the initial fraud alert. By combining industry-specific data with payment and transaction information, we can often clearly identify deviations from legitimate activities through proper visualisation. This forensic approach enhances our ability to understand and act on fraudulent behaviour effectively.
With the move to open-loop payment capabilities, what measures need to be taken to address the increased fraud and security risks associated with this wider acceptance payment instrument?
Robust security measures are crucial as open-loop payments gain traction in the fleet and mobility sectors:
- Multi-factor authentication, including biometrics, verifies user identity.
- Machine learning analyzes transactions for suspicious patterns.
- Encryption and tokenization protect sensitive data.
- Fraud management systems monitor transactions and notify users of suspicious activity.
- User and employee education on fraud tactics strengthen security.
- Collaboration between payment providers allows for sharing best practices and adhering to industry regulations like PCI DSS, creating a secure payment environment.
These efforts balance security with convenience to ensure safe user experiences.
Innovation is key in the fuel and mobility sectors. How does your technology contribute to fraud prevention while engaging directly with end-users, encouraging community growth, and promoting interaction with brands?
ai’s advanced technology has been developed to shield the fuel and mobility sectors from fraud. Our machine learning detects suspicious transactions, fake accounts, and identity theft in real-time, protecting businesses and helping them stay ahead of evolving fraudster tactics.
In addition to providing our users with a comprehensive rules management platform, our sophisticated fraud management solutions deploy machine learning to optimise rules in production, recommend new rules, and identify underperforming ones to remove.
We model data in real time to enable probabilistic scoring or transactions to assess the likelihood they are fraudulent, allowing authorisation decisions to be taken in real-time to prevent fraud. By leveraging advanced algorithms and machine learning, our clients can stay ahead of fraudsters.
Our technology also ensures data quality by distinguishing deliberate fraud from genuine mistakes. This empowers businesses to make accurate fraud decisions. Additionally, our collaboration across industries strengthens the fight against fraud through shared solutions and regulations.
Beyond security, our technology fosters positive brand-consumer relationships – enabling our users to provide personalized experiences, loyalty programs, and feedback mechanisms to build a strong community with their customers.
Technology protects against fraud, ensures data reliability, and facilitates meaningful interactions between brands and their communities. By embracing innovation, businesses can safeguard operations while promoting growth and trust.
As vehicles become payment mechanisms, what security considerations and fraud prevention strategies should businesses adopt, especially in the context of innovations like integrating payment choices into vehicles?
As vehicles evolve into payment mechanisms, retailers need to put in place robust security measures and fraud prevention strategies to ensure the safety of financial transactions. Some payment security measures to consider include:
- Encryption – Employ robust encryption protocols to protect sensitive data during transmission and prevent unauthorized access.
- Tokenisation – replacing actual payment card details with tokens – unique identifiers that are useless to fraudsters even if intercepted.
- Secure communication channels – ensuring secure communication between vehicles and payment gateways to prevent/deter unauthorised use.
- Authentication – implementing multi-factor authentication to verify users’ identities will prevent the unauthorized use of payment instruments.
- Secure Hardware – consider using tamper-resistant hardware for payment processing within vehicles.
In terms of fraud prevention strategies, key considerations should include:
- Fraud detection systems – leveraging advanced machine learning algorithms to identify suspicious patterns and activities.
- Know Your Customer (KYC) – Deploy rigorous KYC practices to help verify user identities and prevent fraudulent transactions and account abuse.
- Regulatory compliance – adhering to industry standards and regulations to maintain a secure payment environment is a must, including PCI DSS compliance.
- Customer education – education of end users around safe payment practices and potential risks is the front line for fraud prevention.
- Behavioural analysis – monitoring user behaviour to detect anomalies – which can be enhanced and automated by using machine learning detection models.
- Real-time alerts – setting up real-time alerts to end users for unusual transactions or activities.
- Geolocation verification – validating the location of the transaction against the vehicle’s actual position.
- Device fingerprinting – creating unique fingerprints for each device to detect suspicious behaviour.
Businesses must adopt a holistic, layered approach that combines robust security practices, fraud prevention strategies, and regulatory compliance adherence to safeguard financial transactions while integrating payment choices into vehicles.
Tokenization is being considered to fight fraud. How do you approach this technology, considering potential regulatory requirements, and what implications do you foresee for PSD3?
Tokenization combats payment fraud by replacing sensitive data with meaningless tokens during transactions. This protects actual card details and can also be applied to other sensitive data.
New European regulations (PSD3) emphasize security and user privacy, aligning well with tokenization’s benefits. PSD3 is expected to tighten security measures further and encourage anti-fraud technologies.
While tokenization enhances security, regulations like PSD3 may not definitively address liability for fraudulent token transactions. As tokenization becomes more widespread, clear guidelines for such cases will be essential.
There is no doubt that tokenization is a powerful tool against fraud, but balancing security, innovation, and user rights will be essential for any robust payment ecosystem to comply with PSD3.
How do you foresee intelligent fuel management and predictive vehicle maintenance playing a role in fraud prevention and operational efficiency within the fuel and mobility sectors?
Intelligent fuel management and vehicle maintenance powered by AI are revolutionizing transportation. Businesses can optimise fuel usage, predict maintenance needs, and prevent fraud by analysing vast amounts of data, ultimately that translates to reduced costs, improved efficiency, and a more sustainable future.
Here’s how:
- AI optimises routes: Real-time traffic data helps choose the most efficient paths, saving fuel and time.
- Predicting demand patterns: Businesses can anticipate needs and strategise fuel management across different transportation modes, streamlining inventory control.
- Enhanced supply chain resilience: AI forecasts disruptions, identifies inefficiencies, and tracks inventory for better preparedness.
- Proactive vehicle maintenance: Sensor data helps detect potential problems before they become major breakdowns, reducing downtime and repair costs.
- Preventing fuel theft: In-vehicle sensors monitor fuel levels and detect unauthorised access, ensuring fuel security.
Intelligent fuel management and predictive maintenance create a win-win situation for businesses and the environment.
Piers Horak
Chief Executive Officer at The ai Corporation
Piers Horak is Chief Executive Officer of The ai Corporation (ai). Horak brings over 15 years of extensive expertise in enterprise retail payments, banking, and fraud prevention. Horak is responsible for building on ai’s track record of developing innovative technology that allows its clients and their customers to take control and grow profitably by managing omnichannel payments and stopping fraud.
