fico® falcon® fraud manager - customer success stories
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© 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
© 2015 Fair Isaac Corporation. Confidential. 3
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
© 2015 Fair Isaac Corporation. Confidential. 4
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
© 2015 Fair Isaac Corporation. Confidential. 5
1999
2002
2004
2005
2006
Background
FICO® Falcon® Fraud Manager Stops Payment Fraud
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
© 2015 Fair Isaac Corporation. Confidential. 6
Background
FICO® Falcon® Fraud Manager Stops Payment Fraud
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
© 2015 Fair Isaac Corporation. Confidential. 7
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
© 2015 Fair Isaac Corporation. Confidential. 8
“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
© 2015 Fair Isaac Corporation. Confidential. 9
“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
Customer OpinionCustomer Opinion
© 2015 Fair Isaac Corporation. Confidential. 10
“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
Customer OpinionCustomer Opinion
© 2015 Fair Isaac Corporation. Confidential. 11
“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
Customer OpinionCustomer Opinion
© 2015 Fair Isaac Corporation. Confidential. 12
“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
Customer OpinionCustomer Opinion
© 2015 Fair Isaac Corporation. Confidential. 13
Customer OpinionCustomer Opinion
“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
© 2015 Fair Isaac Corporation. Confidential. 14
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.”