AI-Powered Cybersecurity and Fraud Detection at PayPal

VentureBeat recently spoke with Assaf Keren, CISO and VP of enterprise cyber security at PayPal, a leading online payment platform. Keren brings a wealth of experience to his role, with a background in building security products, managing infrastructure, and creating security services. He has also founded two cybersecurity startups and held key positions in prominent organizations.

During the latest quarter (FY Q2 2023), PayPal reported impressive financial results, with $7.3 billion in revenue, up 7% year-over-year. This growth can be attributed to increased transaction volume by 5% and a 37% boost in value-added services revenue. By the end of 2022, PayPal had generated $27.5 billion in revenue, with a trailing twelve-month (TTM) revenue run rate of $28.5 billion.

PayPal’s success is also reflected in its AI capabilities, particularly in AI-driven cybersecurity and fraud reduction. The company’s use of AI, machine learning (ML), and deep learning models has led to a remarkable 11% reduction in losses in the latest quarter, despite growing volumes. This indicates that AI is creating value on a large scale for PayPal.

In an interview with VentureBeat, Keren discussed the potential of generative AI in bolstering security without compromising the customer experience. He emphasized that while there are risks associated with new technologies like gen AI, responsible deployment can lead to improved threat detection and response capabilities.

Keren also highlighted gen AI’s role in fraud detection, stating that PayPal has already seen significant benefits from employing AI algorithms and technology. Over the past few years, PayPal has cut its loss rate by nearly half, thanks to advancements in AI. The company’s deep learning models can be rapidly trained and integrated into production within a matter of weeks, allowing for real-time adaptation to evolving fraud patterns.

With its vast amount of payments data, which exceeds 200 petabytes, PayPal recognizes the potential of gen AI to shape the future of checkout and commerce. The company is actively exploring how gen AI can enhance efficiency, improve security, deliver a better customer experience, and drive business growth.

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