Broadcom launched Arcot Smart Ruleset, an AI-driven 3-D Secure engine aimed at helping card issuers improve fraud detection while cutting false declines. Announced on April 8, the new ruleset engine uses machine learning to replace manually written fraud rules with adaptive logic that Broadcom says can respond to changing attack patterns and current compliance requirements. Broadcom positions the offering within its Arcot payment security portfolio, which focuses on 3-D Secure authentication for digital payments.
The company says Arcot Smart Ruleset draws on 20 years of data, processes billions of transactions annually, and benefits from a 3-D Secure data consortium spanning more than 5,500 financial institutions. Broadcom says the platform analyzes real-time transaction signals in milliseconds and automates rules based on current fraud behavior, rather than relying on static “if/then” policies maintained by fraud teams. The product also ties into Arcot’s 3-D Secure Regulatory Engine, which Broadcom says handles protocol upgrades, certifications, and card-scheme mandates for customers.
Broadcom included one customer data point in the launch. Sergio Valencia, vice president of authentication risk management at Velera, said the company prevented more than $2 million in additional fraud savings over the past six months using the technology alongside its existing controls. Broadcom’s broader pitch is that the ruleset can improve approval rates, reduce checkout friction, and free fraud teams from manual rule-writing so they can focus on investigations and strategy.
- Broadcom launched Arcot Smart Ruleset on April 8, 2026.
- The product is an adaptive 3-D Secure rules engine powered by machine learning.
- Broadcom says it replaces manual fraud rule-writing with continuously optimized logic.
- The company says the models are trained on 20 years of data across billions of transactions annually.
- Broadcom says the Arcot network data set includes more than 5,500 financial institutions.
- Arcot’s 3-D Secure Regulatory Engine is positioned as a way to offload compliance, certification, and scheme-mandate updates.
- Velera said it realized more than $2 million in additional fraud savings over six months.
“Automated fraud detection is currently a multi-million dollar differentiator for top issuers,” said Matt Cooke, vice president and general manager of the Payment Security Division of Broadcom. “The Arcot Smart Ruleset is replacing manual logic with precision decisioning.”
