IBM Acquires European Payment Fraud Vendor IRIS Analytics
In mid-January IBM announced the acquisition of IRIS Analytics, a data modeling and analytics provider based in Germany that focuses on risk management for issuers and payment providers. This is IBM’s second acquisition in risk management for the financial services industry following their 2013 purchase of Trusteer.
According to IBM’s research just 16 percent of banks could detect fraud in real-time, or as it is attempted. The other major weakness IBM identified was that when new fraud attacks or patterns are recognized it can often take four weeks to implement measures to fight them. These findings may have influenced their investment in German risk analytics firm IRIS, who offers a real-time and quickly adaptive machine learning solution. Financial terms of the deal were not disclosed.
IRIS Analytics was founded in 2007 and provides a data modeling and analytics platform with real-time risk scoring to support payment card and mobile payments. Their clients include payment processors, switches, wallets, issuers and PSPs, including a major French payment card switch that processes 5.5 billion payment card transactions through IRIS annually.
The acquisition will bolster IBMs fraud prevention and eCommerce services, complimenting their IBM Security Trusteer Advanced fraud protection solutions. Discussing the recent acquisition IBM Industry Solutions GM Alistair Rennie explained that IRIS Analytics combined with IBM’s existing counter fraud technology “will help organizations more accurately detect fraud at scale and speed.” Addressing the problem that most banks cannot respond to fraud attacks quickly, Rennie added that the combined technologies will help organizations be “in a position to implement countermeasures quickly.”
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