Broadcom Inc. Unveils Arcot Smart Ruleset: A Game Changer in Fraud Prevention

On April 8, 2026, Broadcom Inc. (NASDAQ: AVGO), a global leader in semiconductor and infrastructure software solutions, announced the launch of its cutting-edge Arcot Smart Ruleset. This innovative adaptive 3-D Secure (3DS) ruleset engine is powered by machine learning, marking a significant advancement in the realm of fraud prevention for e-commerce transactions. By replacing the traditional manual fraud rule-writing process, the Arcot Smart Ruleset aims to provide optimized fraud detection that adapts to evolving threats and complies with the latest regulatory requirements.

In an era where e-commerce fraud is becoming increasingly sophisticated, traditional solutions that rely on static “if/then” rules are proving inadequate. These outdated methods are not only costly to maintain but also struggle to keep pace with fraudsters who leverage artificial intelligence to enhance their attacks. Furthermore, rigid legacy rules often lead to high false-positive rates, which can deter legitimate customers and diminish revenue for both issuers and merchants.

The Arcot Smart Ruleset emerges as a solution to these challenges, likened to the “self-driving car” of fraud prevention. By utilizing advanced machine-learning models trained on 20 years of data from billions of transactions, it can effectively scale defenses against rapid fraud attempts. Broadcom’s partnership with a consortium of over 5,500 financial institutions further enhances its capabilities, allowing the system to analyze real-time signals and learn about fraud trends in milliseconds.

The efficacy of the Arcot Smart Ruleset is underscored by real-world results. Sergio Valencia, Vice President of Authentication Risk Management at Velera, reported significant success, stating, “In the past six months alone, we prevented over $2 million in additional fraud savings.” This highlights the importance of integrating advanced machine learning into existing fraud prevention ecosystems, enabling institutions to tackle fraud earlier in its lifecycle.

Matt Cooke, Vice President and General Manager of Broadcom’s Payment Security Division, emphasized the strategic advantage this technology provides. “Automated fraud detection is currently a multi-million dollar differentiator for top issuers,” he noted. By transitioning from manual rule-writing to precision decision-making, the Arcot Smart Ruleset empowers financial institutions to adapt to an ever-evolving threat landscape, allowing fraud teams to concentrate on higher-value tasks such as investigations and strategy formulation.

The advantages of the Arcot Smart Ruleset extend beyond just fraud loss mitigation. Its optimized, data-driven rules facilitate higher fraud detection rates, reduce false declines, and minimize friction for customers, ultimately fostering increased revenue through more legitimate transactions. Additionally, the Arcot 3-D Secure Regulatory Engine alleviates the complex burden of maintaining global regulatory compliance. By managing protocol upgrades, certifications, and scheme mandates, Broadcom allows its customers to focus on their core business functions.

Cooke expressed enthusiasm about the product’s impact, stating, “It is blocking more fraud and, in some cases, amounting to millions of dollars in fraud loss savings for our issuers and driving real improvements in the metrics that matter most to financial institutions.”

Broadcom’s launch of the Arcot Smart Ruleset represents a transformative step in the realm of payment security and fraud prevention. With its advanced machine-learning capabilities and a commitment to adapting to new threats, Broadcom is positioning itself at the forefront of the industry. As e-commerce continues to grow, solutions like the Arcot Smart Ruleset will be essential in ensuring the security and integrity of online transactions.

For more information about Arcot and its innovative solutions in payment security, please visit Broadcom’s official website.