IT FUN PEOPLE Introduces Next-Generation Intelligent Risk Management Engine

- Introduces next-generation intelligent risk management engine

- Strengthens protection against SMS/voice authentication fraud and MVNO-based payment fraud

- Enhances evidence management for civil and criminal investigations

IT FUN PEOPLE (President & CEO Seiji Otaki, hereinafter "IFP") announced on September 1 that it has officially introduced a next-generation intelligent risk management engine to further strengthen the security and stability of its global payment platform.

According to an analysis conducted by IFP's Payment Risk Management Team, payment fraud involving SMS and voice authentication manipulation, account takeovers, and identity verification proxy services has continued to increase across the global payments industry. In Japan, fraudsters have increasingly abused prepaid MVNO SIM cards issued to tourists and short-term foreign residents by completing identity verification before discarding the SIM cards within a few days.

The Payment Risk Management Team's internal investigation also identified cases in which fraudulent transactions using specific MVNO lines exceeded several hundred incidents per month at a single merchant. Although the figures represent only one merchant, IFP believes the overall scale of fraud across Japan's online payment market is likely to be significantly larger.

The newly introduced risk management engine analyzes transaction data in real time by evaluating device fingerprints, network environment, IP reputation, VPN and proxy usage, repeated payment attempts, and behavioral patterns to calculate transaction risk scores. High-risk transactions can automatically trigger additional verification, manual review, suspension, or rejection.

In addition, the platform supports the generation of evidentiary materials, transaction history management, and preparation of subscriber information request documents for telecommunications operators when fraudulent transactions occur. This enables merchants to efficiently prepare evidence required for civil and criminal proceedings through a single integrated workflow.

By introducing the new engine, IFP has expanded its risk management capabilities beyond fraud detection at the payment authorization stage to include post-transaction investigation, evidence management, and compliance support. The company expects the platform to reduce merchant losses while providing a safer payment environment for consumers.

Seiji Otaki, President & CEO of IFP, said, "Payment fraud continues to evolve, and conventional authentication methods alone are no longer sufficient. Through our next-generation intelligent risk management engine, we will continue strengthening real-time fraud detection and proactive risk management while delivering a payment environment that merchants and consumers can trust."

IFP plans to continue enhancing its payment security, compliance framework, and enterprise-grade risk management technologies while expanding secure payment infrastructure for merchants worldwide.