Blackbox Machine Learning

Updated on 06.07.22
4 minutes to read
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Overview

Rely on SEON's blackbox machine learning algorithms to crunch the numbers behind the scenes and prevent fraud that human eyes are unlikely to catch. Our Blackbox model calculates a Fraud probability score which is separate from a transaction's SEON Fraud Score, to give you yet another indicator of the risks associated with it. Read below to get the most out of our Blackbox model.

 

SEON's machine learning tools

Glance at our different machine learning tools to understand how they differ.

 WhiteboxBlackbox
Automatic retraining several times a dayYesYes
Uncovers complex fraud patternsYesYes
Human-readable rulesYesNo
Transparent decision-makingYesNo
Automatic rule creationYesNo
Can be used in rulesNoYes
Can effect fraud scoreNoYes
Can change transaction stateYesYes
Fraud probability scoringNoYes
Keeps you in controlYesYes
Fully automatable as neededYesYes
Available from Day 1No*Yes

* Whitebox machine learning requires account-specific training data to begin recommending rules: at least 1000 transactions with 100 in the DECLINE and 100 in the APPROVE state.

 

Using blackbox machine learning

Blackbox machine learning does not affect the SEON Fraud Score of a transaction. Unlike our Whitebox model, it will not recommend human-readable rules that you can enable.

The blackbox model calculates a fraud probability score known as the Blackbox score on a scale between zero (0) and one-hundred (100). While called the Blackbox model, our solution is actually explainable AI. However, the details of how the blackbox model reaches its conclusion and presents a given score cannot be seen on the Admin panel.

On request, our Data Scientists can create a report on the most important features of the Blackbox score calculation. This report will explain key correlations identified in the data used by the AI and the Blackbox score. For example, the Blackbox score decreases when the number of a user's social and digital profiles increases.

The Blackbox score is displayed on the Applied Rules widget of the Transaction Details page.

The model may use parameters and correlations that humans cannot spot easily and retrains itself every few hours. As a result, it helps you stay ahead of complex fraud schemes and changing tactics with ease.

Use the Blackbox score as a second layer of defense, or an indicator of the risk associated with a transaction independent of your rules. You can also fully automate fraud-fighting by relying on the blackbox score.

 

Base model and custom model

When you first start using SEON, your account will likely not contain enough custom data for the Blackbox model to work efficiently. However, thanks to our base model, you can benefit from its speed and accuracy from day one.

The base model is a generic collection of transactions encountered by SEON that we use to train the Blackbox Machine Learning algorithm. The base model turns off when your account passes 1000 transactions, with at least 100 in the DECLINE state and 100 in the APPROVE state. Once you have passed this threshold, the Blackbox model will train on your unique data.

 

Blackbox settings

The Machine Learning tab of the Settings page houses all settings related to your whitebox and blackbox models.

Blackbox settings on the Machine Learning tab of the Settings page.

Use the top-most toggle to enable Blackbox scores for your account. Use this setting to monitor these scores without them affecting your transactions automatically.

To automate fraud prevention using the blackbox model enable the Approve transactions below a certain Blackbox score and Decline transactions above a certain Blackbox score toggles.

A slider will appear for you to set the thresholds according to your risk appetite. Feel free to adjust these values at any time, based on your results with blackbox machine learning. 

Use the slider to set the automation thresholds. 

 

Learn more

Read more about how SEON harnesses the power, speed, and accuracy of machine learning and what you can do to get the best results.

 

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