Google Creates Fraud-Detection Algorithm for Payments
Google has been working on a new algorithm that flags suspicious payments in an effort to help cut fraud.
The algorithm assesses a large payments database to find patterns of suspicious transactions. While it has not found any fraudulent payments yet, it has improved the ability for Google compliance officers to identify issues in a timely manner.
The company’s compliance chief, Andy Hinton, told the Wall Street Journal that the new system makes Google “much more efficient in spotting fraud.”
The efficiency of Google’s compliance department has become increasingly more important over the years as the company works with governments in other countries. Hinton gave the example of Google helping to build cultural centers and parks around the world without making the efforts look like bribery.
Yet another issue with compliance emerges with the development of maps for Google Earth, where vehicles and image-capturing equipment must cross international borders to create an accurate depiction of the world.
Very few details have emerged about Google’s fraud detection, but it could soon improve the way people experience Google Wallet. If the company is able to identify suspicious transactions at the first sign of a problem, Wallet users may not have to worry quite as much about the security of their funds.