prism ® : intelligent fraud monitoring presentation to retail decisions, inc +1 401 228 2355
Post on 29-Mar-2015
220 Views
Preview:
TRANSCRIPT
PRISM® : Intelligent
Fraud Monitoring
Presentation to
<Customer Name>
<name><title><email@red-usa.com>
Retail Decisions, Inc+1 401 228 2355www.red-usa.com
<date>
<Customer Logo>
Retail Decisions, Inc – Confidential and Proprietary
Agenda
• What is PRISM?• Why do I need it?• How does it work?• What are the Benefits?• Why would I buy it from ReD?
Retail Decisions, Inc – Confidential and Proprietary
Retail Decisions, Inc – Confidential & Proprietary
What is PRISM
• PRISM is a software solution or hosted service to financial institutions, processors and switches for prevent payment fraud prevention
• ReD protects transactions in Real Time (RT) or Near Real Time (NRT) and works against any acceptance channel
• The PRISM Product Suite combines:– Complex Business Rules Engine with full business user control– Custom trained Neural networks– Alert Case Management– Workflow– Monitoring and Reporting – Analytics products for strategy development– CPP/POC detection
Retail Decisions, Inc – Confidential and Proprietary
Where does PRISM Fit?
Retail Decisions, Inc – Confidential & Proprietary
Consumer Shops and Makes Purchase
Merchant Sends Authorization Request to Acquirer
Acquirer Sends Auth request (via Networks) to Issuing Bank
Authorization Response Generated and Sent by Issuer
Acquirer sends response to Merchant
Consumer Notified Purchase Complete
Statement and Billing
Payment or Chargeback
Acquirer
Merchant
Issuer
Cardholder
Retail Decisions, Inc – Confidential and Proprietary
PRISM – Complete Solution
• Rule based systems– Focus on what we know about fraud control
– Known fraud schemes can be prevented easily with rules– Challenges
– If the rules are too tight … we catch nothing– If the rules are too loose … we drown in reviews– Rules don’t adapt to evolving fraud patterns
• Statistical solutions– Focus on understanding fraud
– Fraud trend analysis– Helps create complex rules for fraud detection
– Challenges– Not a “dynamic” solution … doesn’t keep pace with changing schemes
• Neural Networks– Focus on what we don’t know about fraud
– Earliness of detection– Easy control of caseload vs false positive rates vs percentage detection– Increased fraud savings
5
Retail Decisions, Inc – Confidential and Proprietary
PRISM® Products
• PRISM Real Time– Real-Time Transaction Decisioning
• PRISM Credit and Debit– Credit and Debit Card Fraud Detection
• PRISM Merchant– Merchant Risk Management
• PRISM AML– Anti Money Laundering
• PRISM RulesPlus– Intelligent Rule Development and Testing
• PRISM PinPoint– Point of Compromise detection
• ReD Shield– Real-time CNP fraud prevention
Retail Decisions, Inc – Confidential and Proprietary
The Problem Changed – Organization and Speed
The scheme included money mules who were hired to withdraw the stolen money from ATMs and store it in safety deposit boxes and luggage lockers at train stations. Within a 12-hour period, $9 million in cash was withdrawn from 2,100 ATMs in 280 cities around the world
Retail Decisions, Inc – Confidential and Proprietary
The Problem Changed - Easy to get
Retail Decisions, Inc – Confidential and Proprietary
Purpose Built Skimmers
Retail Decisions, Inc – Confidential and Proprietary
…Even instructions on YouTube
Retail Decisions, Inc – Confidential and Proprietary
2005 vs 2010 Fraud Type Breakdown
Description Category Code Percent of Reported Fraud Average Dollar Loss
Gas Stations and Service Stations 5542 and 5541 14.50% $77.28
Discount Stores 5310 5.50% $304.30
Grocery/Supermarket Stores 5411 4.75% $231.27
Same industries are taking the pain…
2004 2007 2008 20090
1
2
3
4
5
6
7
8
9
Debit Fraud Trends
Pin
Signature
Bas
is P
oin
ts o
f F
rau
d
Retail Decisions, Inc – Confidential and Proprietary
How does PRISM Work
Retail Decisions, Inc – Confidential & Proprietary
Authorization Request
Authorization Response
PRISM Real Time
Decline Alerting
NRT Rule Alerting
Sub-Second Real Time Request Response
Post Authorization Alerts
PRISM Score
Post Auth Rules
Post Auth Rules
PRISM Score
Extract
Retail Decisions, Inc – Confidential and Proprietary
PRISM Scoring Engine
Retail Decisions, Inc – Confidential and Proprietary
ca
• Learned solution– Solution accurately models the underlying patterns in the data– Iterates to converge on a global error minima– Captures non-linearity and inter-feature dependence
• Incremental Learning– Adaptive systems which learn from new experience– Reinforces existing trends and learns new trends
• Reasons for decision making– Localized neural networks provide exact reasons
• Real-world tested– In commercial applications since early 1980s– Used successfully in reducing card fraud worldwide– Capable of processing large amounts of data
ReD - Key features of Neural Networks
15
Retail Decisions, Inc – Confidential and Proprietary
Transaction Fraud Scoring
SCORING ENGINE
Authorization Read Merchant
Data Object
Merchant
Database
Customer Account
Non-Monetary Activity
Transaction Activity
Chargebacks
Events
Derive
Features
Change in Individual Merchant
usage patterns
Retail Decisions, Inc – Confidential and Proprietary
Transaction Fraud Scoring
SCORING ENGINE
Authorization
Neural
Network
Fraud Score (0-999)
Derive
Features
Compare this particularchange in usage with
Neural Memory oflegitimate & fraudulent
changes in account
Read Merchant
Data Object
Merchant
Database
Alert
Retail Decisions, Inc – Confidential and Proprietary
PRISM Real Time
Retail Decisions, Inc – Confidential and Proprietary
Imm
edia
te
Res
pons
e
Entrance Criteria
Screening Database
Neural Score
Business Rules
As defined by the customer, these are the rules on which transactions need to be scanned in real time.
Positive and Negative database. Accounts and terminal are checked against this list to determine if they should be approved or denied immediately based on this information.
Transactions are scored relative to cardholder profiles of activity using neural model.
User defined Rules are executed against the transactions. Transactions can be approved or denied, but no ALERT is generated by this system
Excluded
Found Card or Terminal
Included
Rules Result
PRISM Real-Time High Level System Flow
Not InDB
TXN + Score
Retail Decisions, Inc – Confidential and Proprietary
PRISM Real Time Decisioning
• Customized implementation based on your authorization system• Suite includes
– Browser based administrative controls– Service Based Architecture including
• Configurable Entrance Criteria – Full control over what is “decisioned” or responded to immediately, with full logging of
account history
• Real Time Neural Engine– Real Time neural score
• Positive/Negative Database– Allow data elements like Account Number or Terminal ID to be entered in
Positive/Negative lists
• Complex Business Rules Engine– Standard rules– Velocity rules
• “Block Account” interface for requests to add/remove • 15 day historical database
– Integration to NRT system for alerts or decline management
Retail Decisions, Inc – Confidential and Proprietary
PRISM RT Database(all Score + Decision data)
PRISM Real-Time
System
All Transactions
PRISM Alerts (NRT)System
Score (Optional)
NRT Rules
Queues
Workflow
All approved and denied transactions are shipped from the RT system to he NRT system.
Neural Score may have been calculated in Real Time.
NRT Rules may have higher false positive, slower executions or different criteria for alerting to send to agents or automated contact systems.
Existing workflow of alerted accounts and transaction is utilized to increase efficiency.
Real-Time and NRT Interaction
Retail Decisions, Inc – Confidential and Proprietary
PRISM Alerts (NRT)
Retail Decisions, Inc – Confidential & Proprietary
Retail Decisions, Inc – Confidential and Proprietary
PRISM High Level Processing Flow
Retail Decisions, Inc – Confidential & Proprietary
Retail Decisions, Inc – Confidential and Proprietary
Retail Decisions, Inc – Confidential & Proprietary
PRISM Alerts System - Benefits
• Case Management– All account, transaction and customer interaction data on one screen– Improves quality of customer care
• Workflow– Alerts are prioritized and routed to analysts for immediate review– Sophisticated queuing software– Improves operational efficiency
• Strategy Software– “Test drive” rules and measure performance before production “roll-out”– Instant deployment of rules without IT involvement– Implement and monitor risk management policies
• Monitoring and Reporting– Comprehensive suite of performance reports– Report Wizard to construct, schedule and deploy customized reports– Continuous fraud loss and trend measurement and mitigation
Retail Decisions, Inc – Confidential and Proprietary
Retail Decisions, Inc – Confidential & Proprietary
A&R – Rule Queue Relationship
PRISM
All Transactions
All alerts: 0.1% - 1% of volume
Rules EnginePurpose: Identify fraud
Queue Facility
Risky MCC queue
Risky city queue
High amount queue. . .
21
Purpose: Targeted alert distribution / Facilitate reviewer
expertise
Retail Decisions, Inc – Confidential and Proprietary
PRISM Rules Engine
• PRISM Rules engine allows complicated business rules to be run on transaction receipt to detect fraud events
• Rules can be written by Business Users, not IT staff• PRISM supports many types of near real-time rules
• Transaction-centric rules• Rules employing the neural score in isolation and in combination with non-neural data
elements• Rules requiring account history
• Velocity - Number of transactions on card / account in user-defined time period• Aggregated amount - Average / total amount per card / account in past X days• Hybrid combinations• Examples: Support all standard SQL operators (<,>, etc), Booleans (AND, OR, NOT, etc),
string operations (IN, etc), wildcards (%)
• Rules requiring negative tables• Geolocation – Implemented as pass-through features
• Average distance between merchants for all purchases in past 30 days• Average distance between CDH home and merchant in past 30 days
• Any valid SQL condition which does not prohibitively impact throughput
Retail Decisions, Inc – Confidential and Proprietary
PRISM 8.x Thin Client Main Screen
Tool Bar for quick access to standard functions
Quick highlights of account status
Information on Account holder, account relationship andnon-monetary activities can be displayed here in a single view
Display of funds at Risk and Fraud Already Reported
90 Day account activity history – All transactions
A single account may have multiple cards. Click here to see status of all associated cards.
If there are Fraud Transactions on this account, use this button to quickly access the screen to Mark Fraud Transactions
History of all agent and system activity on this account
Charting of trends on the account
Button to expand “panes” of the view. Extensive account information can be displayed on these screens including financial info, account history or information from external sources
Retail Decisions, Inc – Confidential and Proprietary
Analysis and Review System - Benefits
• Case Management– All account, transaction and customer interaction data on one screen– Improves quality of customer care
• Workflow– Alerts are prioritized and routed to analysts for immediate review– Sophisticated queuing software– Improves operational efficiency
• Strategy Software– “Test drive” rules and measure performance before production “roll-out”– Instant deployment of rules without IT involvement– Implement and monitor risk management policies
• Monitoring and Reporting– Comprehensive suite of performance reports– Report Wizard to construct, schedule and deploy customized reports– Continuous fraud loss and trend measurement and mitigation
Retail Decisions, Inc – Confidential and Proprietary
… Browser Based
… flexible queuing functionality
… prioritization of alerts
… iterative review and workflow
… all with “point and click” navigation
PRISM®Fraud Review Workstation
Level 2
Level 1
Not Fraud
Next A
lert
Next Alert
Nex
t Ale
rt
Nex
t Ale
rt
Not Fraud
Block A
ccount
Pot
entia
l Fra
ud
New Merchant over 10,000 Daily Avg
Queue
High Risk MCC Queue
Investigate
Bank
Customer
Other Systems
Suspend P
ayment
Investigate
Bank
Customer
Other Systems
Tie-Back to Merchant Accounting and Payment System
No
Act
ion
– P
aym
ent
as u
sual
Adjust R
eserve
Retail Decisions, Inc – Confidential and Proprietary
PRISM Analytical Tools
Retail Decisions, Inc – Confidential and Proprietary
PRISM PinPoint - CPP / POC Detection & Mitigation
• Benefits – Dramatically reduce your counterfeit fraud losses
– Identify merchants unknowingly targeted by skimmers
– Isolate cards which are about to be used fraudulently
– Automatically detect in minutes what takes you weeks of manual
review
– Protect your cardholders confidence in you
Retail Decisions, Inc – Confidential and Proprietary
Common Point of Purchase
• Typical Counterfeit Activity– Skimming: The fraudster secures a number of credit or debit
account numbers at the original Common Point of Purchase, this
location is known as the Point of Compromise.
– Testing: The fraudster makes purchases for small denominations
on an unattended terminal or e-commerce website to determine
which of the accounts are active thus creating a second Common
Point of Purchase.
– Slamming: Fraudster rapidly perpetrates repetitive fraud on each
active account.
• Common Points of Purchase (CPP) and Points of Compromise
(POC)– Data Mining: Interactive data analysis to locate CPP
– Triangulation: Expand search and mining criteria to locate “testing”
terminals and POC
– Prevention: Block-and-reissue compromised cards that have not
been used search and mining criteria to locate “testing” terminals
and POC
Retail Decisions, Inc – Confidential and Proprietary
PinPoint Screens
Retail Decisions, Inc – Confidential and Proprietary
What is PRISM RulesPlus?
• Rule Performance Quantification• Create statistically measured data samples random,
or be a target subset, such as ‘all commercial cards’, to target fraud in specific portfolios or data segments
• Enables the user to quantify the performance of rules prior to releasing them into production
• Enables the user to quantify rule performance on one or more samples of data, allowing them to accelerate the rule optimization process
Retail Decisions, Inc – Confidential and Proprietary
PRISM RulesPlus Features
• Benefits
– Sample: Create random and targeted sample
segments to evaluate performance.
– Evaluate: Measure performance of single or a
family of rule sets.
– Quantify: Obtain fraud detection and false
positive rates of rules prior to deployment.
Retail Decisions, Inc – Confidential and Proprietary
Retail Decisions, Inc – Confidential & Proprietary
• Focus– This is our core competency. This is what we do and do it well – We are there for our customers as fraud evolves– Our competitor’s customers are converting to ReD
Why ReD ?
• Financials– ReD has high earnings stability– Profitable and double-digit growth for the past five years
• Global Presence– Fraud is an international issue without borders– We learn and transfer knowledge from each territory– We rapidly deploys our services as fraud evolves and migrates
• Expertise– Some of the top fraud managers in the world are employees of ReD– Our objective is to maximize valid transactions not just stop bad ones– We help our customers balance the trade-off between risk and
opportunity
Retail Decisions, Inc – Confidential and Proprietary
Benefits of PRISM Application
• Complete Solution– Real Time and Near Real-Time Decisioning– Fraud alert Case management– Reporting on agent and system performance– Integrated communications
• Increase detection and lower false positives– PRISM Neural Engine– User defined business rules
• Configurable– User defined workflow– Automated Actions– Tieback to other systems
Retail Decisions, Inc – Confidential and Proprietary
Benefits of PRISM
• Partnership approach– Collaborate with Customer to demonstrate immediate and
measurable value– Ongoing application review to ensure performance– World wide and multi-channel fraud expertise– Consultative relationship throughout contract
• Tailored and customized– Truly tailored solution for functions and verticals– Detailed and ongoing review of business objectives to ensure the
application meets the need– Customizable options for SMS, Email, and ARU integrations
available
• Technology– Provides hybrid technology solution using Neural, Rules and Analytic
solutions.– Focused on developing products to help fraud managers – Committed to this solution as we use it for our own business
Retail Decisions, Inc – Confidential and Proprietary
Benefits of RD
• Multi-channel Solution– Incorporates activity across all customer interaction channels
• Monitors deposits and “non-monetary” transactions• Risk weighting for products• Risk weighting for risky merchant categories
– Facilitates communication of Alert both inside and outside the organization with multiple channels
• Scalable– Linear scalability of all components– Designed for phased roll-out across business lines and products– High volume transaction processing– Experts in Real Time Fraud decisions
• Support– Solution supported by internal resources– Rated “top-notch” by our customers
Retail Decisions, Inc – Confidential and Proprietary
• Focus– Payments Fraud Detection is our core competency. – We are there for our customers as fraud evolves– Participate in Issuer, Acquirer and Merchant fraud prevention– Hosted and fully managed worldwide fraud solutions for over 10 years
• Global Presence– Fraud is an international issue without borders– We learn and transfer knowledge from each territory– We rapidly deploys our services as fraud evolves and migrates
• Expertise– Some of the top fraud managers in the world are customers of ReD– Our objective is to maximize valid transactions not just stop bad ones– We help our customers balance the trade-off between risk and opportunity
Why Choose Retail Decisions?
Retail Decisions, Inc – Confidential and Proprietary
Why choose Retail Decisions?
• Stay Focused on Customer Business– Create environment for iterative improvement– Monitor False Positives– Continual review of system effectiveness– Focus manual efforts on most likely alerts– Ensure enough data to make effective decisions is available on the
alert– Communicate trends– Use information we have to establish more value– Establish and maintain account relationship focused on the
industry
Retail Decisions, Inc – Confidential and Proprietary
Customer References and Projects
• Customer Commitment– Our customer relationships stand as a testament to our commitment to their
success.– We would arrange reference with any of our customers– We regularly attend all customer internal product meetings to ensure we are
part of the team
• Conversions from competitors products– We have converted two customers off PRM as live software installs, Both
took less than 10 weeks.– Both required multiple installations of the PRISM product (Credit and Debit).– Neither were required to change SEIP message.– Both received new “quick start” models as part of the conversion, with
complete custom models within 4 months.– New tools available are providing them more options to bring additional data
into the PRISM Score and Rules than was available previously
Retail Decisions, Inc – Confidential and Proprietary
QUESTIONS / NEXT STEPSQuestions / Next Steps?
PRISM® Debit:
Intelligent Fraud Monitoring Presentation to
Banamex
THANK YOU
Retail Decisions, Inc+1 401 228 2355www.red-usa.com
top related