The global provider of financial service technology solutions, FIS, has collaborated with Stratyfy to boost card fraud detection capabilities. This partnership promised to curb fraudulent activities that pose a threat to businesses.

According to the press release, fraudulent transactions pose a substantial threat to businesses and consumers, with projected annual costs exceeding $40 billion by 2027. Following this trend, FIS is leveraging its partnership with Stratyfy to fortify its SecurLOCK card fraud management solution.

The Machine Learning Advantage

Eric Kraus, the Head of Fraud Services at FIS, mentioned: "With sophisticated fraudsters using new technologies to increase fraud attacks, both businesses and consumers are facing more risk than ever before. This new collaboration is a continuation of a commitment to implement new technologies, helping businesses prevent fraudulent behavior to protect the consumers they serve."

This alliance between FIS and Stratyfy happens when fraudsters are continually evolving their tactics to defraud customers. According to these firms, this initiative prevents unnecessary disruptions and delays in transactions caused by fraud alerts.

Central to the deal lies Stratyfy's machine learning approach, which promises superior outcomes in fraud detection. Laura Kornhauser, the CEO and Co-Founder of Stratyfy, emphasized the value of partnerships in driving innovation.

Kornhauser mentioned: "It’s rewarding to see how our unique machine learning approach can enable better outcomes through this solution. Our relationship with FIS showcases the tremendous value that is possible through partnerships, and we’re thrilled to continue to build upon this important work."

FIS Defies Negative Financial Performance

Recently, FIS announced plans to raise its share repurchase goal to $4 billion following a double-digit decline in earnings. The company's financial report for 2023 highlighted a diluted EPS of $0.85 and an adjusted EPS of $3.37. This represents a decline in the firm’s earnings. However, FIS exceeded its Future Forward cash savings projections, achieving over $550 million in annual savings by the end of 2023. The company mentioned that it is targeting a total cash savings of $1 billion by the end of 2024.

Besides that, FIS holds a 45% ownership stake in the Worldpay Merchant Solutions business following the completion of the acquisition in January 2024. This investment will be reported under the "Equity method investment earnings (loss)" line of the income statement starting in Q1 2024.