TECHNOLOGY BRIEF

Outseer Risk Engine™
Powering the Decisions that Protect
Your BusinessREAD ON

At a Glance• Highest reported fraud
detection in the Industry:
95% Fraud Detection with 5%intervention• Continuous model
enhancements areperformed by our data
science experts to mitigate
latest fraud trends• Advanced Machine learningalgorithms

Outseer Risk Engine predicts what others can't todeliver the best fraud detection and lowest
intervention rates in the industry.
Outseer Risk Engine, built for precision detection, utilizing themost effective signals to detect and prevent fraudulentactivity. By predicting what others can't, our risk engine delivers
the best fraud detection and lowest intervention rates in theindustry. Our data science team’s fraud expertise is reflected incontinuous improvements in our modeling, we deliver anaccurate risk score reflecting the probability of an activity ortransaction is fraudulent.
As more and more digital payments options are rolled out,organizations need to be prepared for potential payment risks
and challenges, and solutions need to provide security without
sacrificing the user experience. By harnessing data intelligenceindicators and transaction data, Outseer solutions pinpoint
both authentic customers and bad actors with the highest
accuracy across all digital channels. All while reducing friction
for legitimate customers.

Outseer Risk Engine: Powering Confident Decisions
The Outseer Risk Engine is the heart of our Outseer Intelligent Platform. This Platform enables ourcustomers to provide comprehensive fraud protection across the digital journey. Point solutions areoften too narrow in focus and miss the holistic view of the threats. Providing these comprehensive
solutions enables our customers to have confidence they are protected and allows them to turn theirfocus to driving growth in their own respective businesses – higher revenues + lower fraud losses
translates into increased profitability for our customers.

Outseer Risk Engine™ - Technology Brief2

More Detection, Less Intervention
The Outseer solutions used by leading financial institutions, payment card issuers, and globalorganizations all leverage the Outseer Risk Engine, which reveals hidden customer truths before
transactions ever occur. Outseer helps enable new business growth by balancing precision detection
without compromising the user experience, leading to outcomes like:•97% transaction approval rates•

Higher interchange revenues•

Lowering fraud losses•

Optimizing operational costs

Higher growth& profitability

Evaluating variables like users, devices, and transactional behavior fuel the risk engine, which
provides the foundation for transparent authentication. Confidently allow transactions to passunhindered, reserving step-up challenges for only the riskiest transactions or those flagged by yourspecific policies.

How It Works
Outseer Risk Engine analyzes a wide range of data signals associated with an activity to determine
the probability of a given interaction being genuine or fraudulent. It uses machine learningtechniques to reveal fraud patterns and distinguish a fraudulent activity from genuine one.

Outseer Risk Engine™ - Technology Brief

Analysis Across a Wide Array of Data Inputs
Using various sources of information, the Outseer Risk Engine assigns a unique risk score to every
digital transaction. The risk score and risk policy set by an organization determine whether a user ischallenged with step-up authentication. But a risk score is only as good as the data that goes into it.
The Outseer Risk Engine further enriches the data set with several essential inputs from the Outseer
Global Data Network.

The Outseer Global Data Network
Outseer's Global Data Network is a consortium of verified fraud and transaction data. Outseer
pioneered this consortium's creation and has been enhancing its value for over a decade.
The intelligence captured within the network stems from hundreds of contributors including Outseer
customers and partners. The Intelligence shared among the network members includes signals from
confirmed fraud activities that were marked by the network members, such signals include: and iscomposed of various data elements such as: IP addresses, Device fingerprint, Cookies, Mule
accounts, fraud patterns and more.

The Outseer Global Data Network and the Outseer Risk Engine, constitute and power theOutseer Intelligent Platform, allowing us to deliver some of the highest fraud detection andprevention results in the industry.

Risk Scoring: A Modern Machine Learning Approach
After data collection, Outseer Risk Engine uses an advanced statistical approach to calculate the risk
score. This method infers the conditional probability of an event being fraudulent, given the known
factors or predictors. All available factors are taken into consideration, weighted according torelevance. The most predictive factors contribute more heavily to the score. The Outseer Risk Engine
uses the right data, at the right time for the right use case.
The benefits of this approach result in a model of high performance and a superior ability to explain
what is truly driving your score.

Outseer Risk Engine™ - Technology Brief

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Outseer Risk Engine – Risk Scoring Process
Risk Scoring Process Flow
The Outseer Risk Engine flow includes six main phases

1.

12DataGathering

ProfileBuilding

3
Generating
Predictors

4
Preliminary
Risk Score

5Risk Score
Normalization

6SelfLearning

Data Gathering
The Outseer Risk Engine collects data from diverse inputs, including our own Global Data
Network as well as anomaly detection. These signals are enriched then organized using auniform data format, optimized to analyze the risk presented by a transaction.

2.

Profile Building
Profiles are sets of accumulated historical data and statistics about the user, IP address,
device and other relevant entities. Using these profiles, the Outseer Risk Engine can distinguishbetween normal transaction behavior and abnormal behavior that may suggest fraud.

3.

Generating Predictors
Predictors are data variables in the risk model assumed to correlate with fraud. They’regenerated from facts about the current transaction as well as from historical data fromprofiles. The better the predictors, the more accurate the prediction of fraud.
For example, the risk engine will look at variables such as the type of payment being made, if
the payee account has received payment from the user in the past, the amount of thepayment, etc.

4.

Assigning a Preliminary Risk Score
The Outseer Risk Engine generates a preliminary risk score based on the probability of fraud
given the predictors that are present. All data variables are taken into account in thispreliminary score, with each one weighted based on its relevance5.

Risk Score Normalization
Risk scores generated by the Outseer Risk Engine are normalized to a logarithmic scale from 0
to 1,000, using linear interpolation to convert the risk score to a common scale. This
normalization provides more control over the percentage of transactions requiringintervention. In turn, it provides the ability to modulate staffing (both call center and antifraudcenter). It also brings predictability to the impact on score-based policies on the end user
experience (intervention/challenge rates and false positives).

Outseer Risk Engine™ - Technology Brief5

6.

Self Learning
The Outseer Risk Engine learns automatically and re calculate the weightings of the risk
predictors. Its self-learning is based on feedback originating from:• Case Management: When a fraud analyst investigate a case and provides caseresolution (confirmed fraud/ confirmed genuine) the feedback is fed back to the riskengine to enhance future risk assessments.

• Authentication Results: Failed step-up authentications automatically result in higher risk
scores for future transactions from the same account with similar device parameters.
Likewise, successful authentications lower the risk score in future transactions.

• Chargeback Data: The risk engine learns from chargebacks data

A Core Outseer Technology
The Outseer Intelligent platform powered by Outseer Risk Engine helps provide better foresight toassess, detect and stop fraud before it occurs.
Highly accurate risk engine is key to achieve profitable growth,High accuracy means more genuine users transact seamlessly, more transactions are authorized, lessfraud losses and less operational costs associated with fraud investigation and false positives, all leads
to profitable growth.

The Benefits of theOutseer Risk
EngineTM

Approval Rates

FraudLosses

Interchange
Revenues

OperationalCosts

Profitable
GrowthOutseer Risk Engine™ - Technology Brief6About Outseer
Outseer is on a mission to liberate theworld from transactional fraud. Our
market-leading payment and accountmonitoring solutions protect over $200
billion in annual payments while increasing
revenue and reducing customer friction forcard issuing banks, payment processors,and merchants worldwide. Leveraging
billions of annual transactions from morethan 6,000 institutions across the globe, ouridentity-based science delivers the highest
fraud detection rates and lowest customer
intervention in the industry. See what
others can’t at outseer.com.

©2022 RSA Security LLC or its affiliates. All rights reserved. RSA and the RSA
logo are registered trademarks or trademarks of RSA Security LLC or its
affiliates in the United States and other countries. All other trademarks are
the property of their respective owners. RSA believes the information inthis document is accurate. The information is subject to change without
notice. Published in the USA.06/21