FICO® Falcon® Fraud Manager - Customer Success Stories

© 2015 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.

FICO® Falcon® Fraud Manager

www.FICO.com/EnterpriseFraud

Customer Success Stories

© 2016 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.

© 2015 Fair Isaac Corporation. Confidential. 2

Background

Technology Underpinning

FICO® Falcon® Fraud Manager

90%

Percentage of the US payment cards covered

by FICO fraud solutions

9000

Banks participating in FICO’s fraud data consortium – driving insight and analytic innovation

2.6B

Active financial accounts protected by FICO worldwide –providing a global perspective

10ms

Average response time for fraud decisions rendered

by FICO’s low-latency real-time engine


Background

Technology Underpinning

FICO Fraud Analytics

Percentage of credit card accounts in the world that are covered by FICO fraud

solutions

65%

0

5

10

15

20

1991 1996 2001 2006 2011 2015

Basi

s Po

ints

Year

Card Fraud

FalconIntroduced


Background

FICO® Falcon® Fraud Manager Stops Payment Fraud

Real-time analysis of credit card transactions using patented cardholder profiling that condenses enormous amounts of historical transactional data to understand behavior patterns of each account and to recognize fraudulent transactions

1992

Neural network models that work like the human brain to understand complex non-linear interactions between variables (e.g., transaction amount, location) to become increasingly precise in identifying fraud

1993

Debit card profiling to expand real-time payment protection to debit card transactions

1995

Merchant profiling to spot fraudulent merchant activity

1996

1998 Check fraud modeling that expands payment fraud prevention from credit cards to personal checks

Falcon retail brings neural networking to retail card fraud


1999

2002

2004

2005

2006

Background


Falcon ID solutionfor enhanced identity fraud detection using multiple sources of identity-validating data

Modeling of first-party fraud to recognize when people are committing fraud under their own names or invented names

Outlier modelsthat reduce “false positives” by examining unusual payment incidents within the context of other outlier transactions

Debit PIN profilingto prevent fraudulent PIN-based debit card transactions

Fraud predictor to improve recognition of likely fraud by updating models each week with merchant statistics

E-commerce fraud profiling to protect merchants from card-not-present fraud by customers transacting on their websites


Background


Adaptive analyticsthat enable FICO’s system to adjust its models as fraud patterns change

Behavior sorted lists that improve the ability to identify suspicious transactions by building a more complete picture of a consumer's likely behavior

FICO applies for its100th anti-fraud patent

2009: Global intelligent profiles that identify riskiest ATMs, merchants and regions so extra scrutiny can be applied where risk is greatest

2007: Device profiling uses transaction data to detect PIN-based fraud on debit card networks

2008: Self-calibrating technology that allows FICO’s system to fine-tune itself in real-time in response to shifts in transaction trends

2007

2008

2009

2010

2012

2013


A pool of data from global issuers including transactions, fraud tags, and non-PII customer informationIncludes the transactional, account data and fraud data from 2.5 Billion + payment accounts

Background

Falcon Fraud Consortium: Protecting the World from Fraud


“Our objective is to provide unsurpassed fraud protection to our customers. Falcon Fraud Manager gave us the real-time detection and it enables us to manage fraud for all customers’ cards from a single platform.”

Paul Mathias, Head of Fraud Risk Management

ABSA, South Africa

Customer OpinionCustomer Opinion


“FICO Falcon will help make our customers’ everyday lives easier by improving security and protecting them against fraud. This is a milestone for us, our partners and our customers.”

Freddy Syversen, Chief Executive Officer

EnterCard, Nordic Card Issuer



“EVERTEC is upgrading its fraud offering with strong tools to defend against payment card. Falcon Fraud Manager and FICO Card Alert Service are the most up-to-date solutions for protecting our clients and their customers from fraud losses.”

Jorge Hernández, Senior Vice President

EVERTEC, Puerto Rico



“What impressed us most about Falcon Fraud Manager was how accurate it is in detecting legitimate fraud.”

Head of Fraud Management

Hong Leong Bank, Malaysia



“We have opted for FICO Falcon Fraud Manager to further secure our customer’s transactions, unimpeded by any online threats.”

Jairam Sridharan, Head of Consumer Lending and Payments

Axis Bank, India




“We’re aiming for significantly increased purchase usage among our debit cardholders. Our success will depend largely on our ability to assure customers that they can use their cards, both online and in stores, to make purchases in an easy, safe, and secure manner. With FICO Falcon Fraud Manager, we can accomplish both and give our customers what other banks can’t.”

Emmanuel Narciso, Executive Vice President For Consumer Lending

Banco de Oro, Philippines


Streaming Analytics and a Central Network Scoring Engine Bring Fraudulent Transactions to Light

Press Opinion

“To help stop the growth of sophisticated fraud, FICO, best known for providing credit scores, developed a system that combines payment authorization data from a global consortium of its banking clients.”

“Known as Falcon Fraud Manager, the system uses streaming analytics and a central network scoring engine to create a real-time transaction monitoring and decision platform.

“With the data and technology, FICO can develop fraud models to help its clients differentiate between legitimate and fraudulent transactions, enabling them to make real-time decisions to prevent loss.”

http://www.computerworld.com/article/2977529/data-analytics/fico.html

FICO® Falcon® Fraud Manager - Customer Success Stories

Software

Transcript of FICO® Falcon® Fraud Manager - Customer Success Stories