IBM has acquired IRIS Analytics, a privately held company specializing in real-time analytics to help combat payment fraud.
Founded in 2007, IRIS is headquartered in Koblenz, Germany. Financial terms of the deal were not disclosed.
IRIS provides a real-time fraud analytics engine that leverages machine learning to generate rapid anti-fraud models while also supporting the creation and modification of ad-hoc models, which have been used on various sized payment platforms.
Acting as a “virtual analyst” to help identify new fraud patterns, IRIS applies machine learning models to help analysts detect fraud and act quickly to help reduce fraudulent events.
"The combination of IRIS Analytics with IBM's counter fraud technology will help organizations more accurately detect fraud at scale and speed so that they are in a position to implement countermeasures quickly, with more control and transparency, while at the same time assists with dramatically lowering false positives,” said Alistair Rennie, general manager for industry solutions and offering management at IBM.
Constantin von Altrock, CEO of IRIS Analytics, said that as the payments industry evolves with new payments methods such as chip and PIN, mobile payments and immediate payments, the ability for financial institutions to accurately make decisions about what is suspicious and what is legitimate before the payment is executed is required.
“The combination of IRIS technology with IBM’s Counter Fraud capabilities creates a comprehensive solution for real time payment fraud prevention,” he said.