Introducing Day One Defense Models: How to Get Tailored Fraud Prevention AI Models Quickly
Hawk recently launched its Day One Defense Models, a solution enabling financial institutions to rapidly implement AI models for fraud prevention. Instead of choosing between the speed of an out-of-the-box approach or the accuracy of tailored models, FIs can now achieve both speed and accuracy simultaneously.
We spoke with our Product Marketing Manager, Freya Lomax, to learn more about why Day One Defense Models are so important.
Q: AI offers huge opportunities for preventing fraud. What was the problem that fraud teams were seeing?
It’s clear that financial institutions can greatly improve efficiency and effectiveness with AI for fraud prevention. But until now, FIs were faced with a choice: either choose out-of-the-box, plug-and-play AI models that capture known high-impact threats and can be up and running in days.
Alternatively, you can have custom AI models built specifically for your institution. These models can be very good at reducing false positives and identifying novel risks.
But there’s a downside to both. A generic out-of-the-box banking model will quickly spot and stop some generic fraud patterns. But it won't understand the specific patterns of your customers and business. Custom models offer that precision, but they can be expensive and require a lot of development time, tuning, and integration effort from your team.
Q: In short, fraud teams need hyper-personalization and fast deployment?
Exactly. Current options force FIs to choose between speed and personalization, when what they really need is both. You need precision to capture specific risks, but you also need to deploy AI models quickly to deliver ROI.
Q: So, what has Hawk done to close this gap?
We could see that our customers needed both speed and accuracy so we built our Day One Defense Models. They’re trained on your institution’s data for specific fraud typologies, and deployed in days, not months. They’re not built from scratch, but they’re also not generic off-the-shelf models. Rather, they combine fast deployment with personalized protection.
Q: What’s the secret to delivering both speed and personalization?
We’ve developed typology blueprints that capture the common features for certain fraud patterns. We then tune and adjust those features and thresholds to fit each financial institution's use case.
Q: What kind of results can financial institutions expect to see?
Personalized protection at the speed of out-of-the-box models. They can be deployed in under three days, after initial data ingestion and solution setup.
One of our customers identified 30% more fraudulent accounts using our merchant fraud model. In this case, scammers were creating fake merchant profiles to trick users into sending money and then quickly cashing out. Our model flagged these merchants by comparing their behavior to peer merchants.
Q: How many typologies do Hawk’s models cover?
We have a full library of Day One Defense Models designed for key fraud typologies, including chargeback fraud, stolen credit card use, mule accounts, account takeover, APP fraud and new account bust out. Just like our custom AI models, these models are designed to make alert review easy.
Q: What happens when teams actually need to review a case?
Our AI is fully explainable, so fraud teams can act decisively. We provide simple, intuitive explanations for every decision the model makes. This helps analysts understand why a transaction was flagged and an informed decision quickly.
- Read more about Hawk's Day One Defense Models
- Contact Hawk for a demo