nSure.ai’s patent addresses the increasing gift card fraud in the US, offering businesses effective tools to counter illegal activities in the growing gift card market.
According to the shopping platform Capital One Shopping, 23% of US consumers will have given or received gift cards in 2023 that were empty when they were received. The U.S. Patent and Trademark Office has granted nSure.ai, a fraud prevention company, a patent with the number 20220036364 to help counteract the growth of statistics like these.
Gift card fraud increased from $20 million in 2015 to $148 million between January and September of 2021. The market for gift cards is expected to reach $643 billion by 2028, and as more fraudsters look for ways to take advantage of the service, this number will only rise. The nSure.ai patent, titled “Systems and Methods for Detection of Online Payment Mechanism Fraud,” aims to arm businesses with the tools they need to combat the growing threat of illegal activity.
Instead of flatly rejecting a transaction, the merchant accepts it and issues a gift card with a negative balance. Moreover the method used by nSure.ai, which employs artificial intelligence (AI) to determine whether transactions are fraudulent with an incredibly high degree of certainty, enables the merchant to do this.
According to Alex Zeltcer, CEO of nSure.ai, “Fraudsters who try to sell a worthless gift card on the dark web will see their reputation tarnished in their world, and will find it difficult to continue to operate under the same user name.” “Their time and money will be wasted on these transactions. In the end, the fraudsters will leave such online retailers alone and move on to other targets.
Ongoing battle against fraud
In its global fight against fraud, nSure.ai has been granted a second patent. ‘Systems and Methods for Detecting Fraudulent Use of a Serial Code for Accessing an Associated Value Stored on a Network’ is the title of a patent (10650382) that the fraud fighters were awarded in May 2020.
A brute-force balance check to locate account numbers with a balance is not possible thanks to that patent. The system shows bogus balance numbers when it detects that this assault is taking place, making it impossible for the fraudster to distinguish between cards that are genuine and those that are fakes.
Moreover nSure.ai aims to protect online transactions and payments on all platforms. And than legally, it commits to assisting merchants in raising approved transaction ratings. It guarantees that up to 95% are authorized.
Finally the company can issue zero-balance gift cards to thieves and misdirect fraudsters employing brute-force balance check attacks thanks to its ability to recognize fraudulent transactions.