Not affiliated with JPMorgan Chase.

productionv3.2SR 26-2 · Tier 1 - ongoing monitoringApproval-rate parity within tolerance

Real-time fraud detection

Authorization-time fraud scoring

Owner: Fraud Data Science · last validated Apr 18, 2026 · metrics illustrative on synthetic data

Outcome it answers for

+34%fraud losses caught vs rules baseline, against rules engine-22% false declines

Illustrative. In production this figure comes from the monitored champion-challenger result, not the card.

0.942
AUC
0.713
KS
0.821
Precision
0.774
Recall

Top drivers (SHAP)

amount z score0.28
mcc risk tier0.21
card not present0.18
txn velocity 1h0.16
merchant risk0.10
geo mismatch0.07

Disaggregated performance

GroupAUCApproval
Mass0.93997.1%
Affluent0.94597.8%
Private Client0.94898.2%
Small Business0.93396.4%

Segments are business segments. This model is not a credit decision, so this is a parity check, not a fair-lending test.

Intended use

Scores each authorization for fraud probability; declines or steps up above threshold, with human review on edge cases. Not a credit decision.

Training data

18 months of authorizations with confirmed-fraud labels, temporal hold-out split. Metrics shown are illustrative on synthetic data.

Limitations

Weaker on novel card-not-present attack patterns; retraining triggers at KS drift above 0.05.

Fair treatment and decline reasons

Not a credit decision: refusals to authorize at the point of sale are not adverse action under Reg B (12 CFR 1002.2(c)(2)(iii)). No protected-class attributes are used; approval-rate parity is monitored across segments. Decline reasons go to servicing agents, never to the declined party in fraud-revealing detail.