{"id":54913,"date":"2023-10-20T16:29:19","date_gmt":"2023-10-20T16:29:19","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/machine-learning-and-big-data-know-it-wasnt-you-who-just-swiped-your-credit-card-startupsmart\/"},"modified":"2023-10-20T16:29:19","modified_gmt":"2023-10-20T16:29:19","slug":"machine-learning-and-big-data-know-it-wasnt-you-who-just-swiped-your-credit-card-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/machine-learning-and-big-data-know-it-wasnt-you-who-just-swiped-your-credit-card-startupsmart\/","title":{"rendered":"Machine learning and big data know it wasn’t you who just swiped your credit card – StartupSmart"},"content":{"rendered":"
\u00a0<\/p>\n
You\u2019re sitting at home minding your own business when you get a call from your credit card\u2019s fraud detection unit asking if you\u2019ve just made a purchase at a department store in your city.<\/p>\n
\u00a0<\/p>\n
It wasn\u2019t you who bought expensive electronics using your credit card \u2013 in fact, it\u2019s been in your pocket all afternoon. So how did the bank know to flag this single purchase as most likely fraudulent?<\/p>\n
Credit card companies have a vested interest in identifying financial transactions that are illegitimate and criminal in nature.<\/p>\n \u00a0<\/p>\n The stakes are high. According to the Federal Reserve Payments Study<\/a>, Americans used credit cards to pay for 26.2 billion purchases in 2012.<\/p>\n \u00a0<\/p>\n The estimated loss due to unauthorized transactions that year was US$6.1 billion<\/a>. The federal Fair Credit Billing Act<\/a> limits the maximum liability of a credit card owner to $50<\/a> for unauthorized transactions, leaving credit card companies on the hook for the balance.<\/p>\n \u00a0<\/p>\n
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