Incremental Machine Learning for Fraud Management

Protect your business’s reputation by using the next generation of fraud prevention for merchants to reduce fraud losses and end model degradation

The True Cost of Fraud for Merchants

Payments fraud causes reputational damage, increases the risk of non-compliance with key regulations and negatively impacts the overall consumer experience. Traditional fraud mitigation methods have increased false positives and are not well-suited to the changing dynamics of the eCommerce landscape.

  • 38% of merchants lost at least 6% of their revenue to payments fraud in 2020
  • 59% of merchants saw an increase in eCommerce fraud in 2020 relating to card-not-present transactions
  • U.S. retail and eCommerce merchants paid $3.75 for every $1 of fraud
  • The cost of fraud for U.S. merchants has increased by 19.8% since 2019

The Problem with Traditional Machine Learning for Fraud Management

Traditional machine learning lacks the adaptability, automation and transparency merchants need for successful fraud management.

  • Traditional machine learning models are unable to evolve
  • The specialized skills needed to combat model degradation are increasingly difficult to come by
  • Merchants risk unequal treatment toward consumers
  • This leads to higher fraud losses and costs for merchants

Improve Your Machine Learning to Work Smarter for Your Business

Traditional machine learning models have limited value in today’s age of change. ACI Worldwide’s incremental machine learning is a new approach to fraud management empowering merchants to adapt to the changing eCommerce landscape.

  • Leverage historical and live data to recognize behavioral changes and dynamically respond to changes
  • Automatically make small adjustments to models to enable them to maintain and improve over time
  • Augment and refresh models in real time based on streaming data
  • Create fewer chargebacks, false positives or disruptions — all without manual intervention

Incremental Machine Learning for Fraud Management

Within the first three months of launch, ACI’s incremental models outperformed traditional models by more than 10% and merchants saw


Fraud Detection Rates


False Positive Rates


Reduction in Fraud Losses


Longer Scoring Model Performance


Safe and Secure

ACI Worldwide has a wide range of fraud prevention capabilities that enable merchants to achieve industry-leading performance.