As we move from checks to chip-and-pin and contactless payment methods, electronic payment fraud and ways to circumvent security will only increase.
Companies making the transition to newer forms of payment technology need to be able to detect and counter fraud as quickly as it starts, and so companies which provide real-time analytics of payment patterns are proving to be valuable.
The financial terms of the deal were not disclosed.
Founded in 2007, Koblenz, Germany-based IRIS develops off-the-shelf fraud prevention solutions, including a platform which supports real-time fraud scoring across electric payment channels, including credit and debit cards, prepaid cards and both online and mobile payments.
IRIS applies cognitive machine learning models to identify new fraud patterns and acts as a "virtual analyst" to bring the technological gap for payment providers on the lookout for suspicious activity.
Alistair Rennie, general manager of Industry Solutions at IBM said that cognitive computing has proven to be the catalyst for new models in fighting fraud, and the integration of IRIS's technology with IBM's current portfolio will give client companies a more accurate way to detect fraud -- and at a speed which allows them to fight back and implement countermeasures efficiently.
Constantin von Altrock, Chief Executive Officer of IRIS Analytics commented:
"Defenses against financial crime are in critical need of innovation and improvement. 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."