IBM z16 enables real time fraud detection

The IBM z16 is designed to enable clients to analyze real-time transactions, at scale -- for mission-critical workloads such as credit card, healthcare and financial transactions.
11 April 2022

Financial institutions worldwide struggle with the impacts of fraudulent activities on their revenues and consumer interactions. Today, fraud detection tools are becoming increasingly in demand as financial institutions look to avoid any untoward incidences and protect their customers.  Leveraging machine learning and artificial intelligence, the technology continues to evolve with more features being added to improve fraud detection services.

According to a new study from IBM and Morning Consult “2022 IBM Global Financial Fraud Impact Report,” credit card fraud is the most common type of fraud among consumers in the seven countries surveyed. Consumers today also expect banks and payment networks to be responsible for preventing fraud.

There is one problem though. Fraud detection can only happen when a fraud is committed. Running deep-learning models at scale in real-time has not been possible due to latency issues, meaning fraud detections models are only run on less than 10% of high-volume transactions – a significant amount of fraud is going undetected.

To deal with this, IBM has unveiled its next-generation system with an integrated on-chip AI accelerator to deliver latency-optimized inferencing. The IBM z16 is designed to enable clients to analyze real-time transactions, at scale — for mission-critical workloads such as credit card, healthcare and financial transactions. The IBM z16 is specifically designed to help protect against near-future threats that might be used to crack today’s encryption technologies.

Ric Lewis, SVP at IBM Systems commented, “IBM is the gold standard for highly secured transaction processing. Now with IBM z16 innovations, our clients can increase decision velocity with inferencing right where their mission critical data lives.”

He added that this opens up tremendous opportunities to change the game in their respective industries so they will be positioned to deliver better customer experiences and more powerful business outcomes.

The IBM z16 uniquely brings together AI inferencing, via its IBM Telum Processor, with the highly secured and reliable high-volume transaction processing IBM is known for. As such, banks can now analyze for fraud during transactions on a massive scale.

To be precise, the IBM z16 can process 300 billion inference requests per day with just one millisecond of latency. For consumers, this could mean reducing the time and energy required to handle fraudulent transactions on their credit cards while merchants will have a reduction in revenue loss as consumers could avoid the frustration.

In short, applying the new capabilities of IBM z16 to other industries can help create an entirely new class of use cases, including:

  • Speeding up the loan approval process.
  • Clearing and settlement to determine which trades and/or transactions may have a high-risk exposure before settlement
  • Federated learning for retail to better model risk against fraud and theft

To understand more about IBM z16, check out the video below.

Fraud detection with the industry’s first quantum-safe system

“IBM z16 is a strategic platform for clients, supporting critical business operations and securing highly sensitive data. It is an open, agile platform that integrates into a hybrid cloud environment with industry-leading security, data privacy and latency,” explained Ross Mauri, GM, IBM Systems.

What makes IBM z16 standout is that it takes cyber resiliency a leap further by protecting data against future threats that could evolve with advances in quantum computing.

As the industry’s first quantum-safe system, IBM z16 is underpinned by lattice-based cryptography, an approach for constructing security primitives that help protect data and systems against current and future threats. With IBM z16 quantum-safe cryptography, businesses can future-ready their applications and data today.

With secure boot (meaning that bad actors cannot inject malware into the boot process to take over the system during startup), IBM z16 clients can strengthen their cyber resiliency posture and retain control of their system. Also, the Crypto Express 8S (CEX8S) hardware security module will offer clients both classical and quantum-safe cryptographic technology to help address their use cases requiring information confidentiality, integrity, and non-repudiation.

IBM z16’s secure boot and quantum-safe cryptography can help clients address future quantum-computing related threats including harvest now, decrypt later attacks which can lead to extortion, loss of intellectual property, and disclosure of other sensitive data.