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Fraud management platform offered at reduced cost

Addresses enterprise fraud across channels, products, services

Fraud management platform offered at reduced cost

FICO recently made available its FICO Falcon Platform for enterprise fraud management, giving financial institutions and their customers real-time protection from fraud across multiple payment channels, products, and services.

Because of the platform’s support for such open source technologies as Linux, start-up infrastructure costs can be as little as one tenth what it has traditionally taken to deploy FICO Falcon Fraud Manager. This technology is the heart of a modular, flexible enterprise fraud protection system. Smaller institutions can begin with a rules-based system for detecting transaction fraud in real time and managing suspected fraud cases.

For larger credit grantors and current Falcon Fraud Manager clients, the FICO Falcon Platform can substantially reduce the cost of expanding portfolios or extending protection to new products or channels. A credit grantor can systematically add connected levels of protection by deploying fraud analytic modules specifically developed to detect fraud in targeted channels, including checking/current accounts, e-payments, mobile payments, and payment cards. FICO estimates the platform’s flexible architecture could reduce clients’ fraud protection costs by as much as 75%.

“Most enterprises today rely on a collection of discrete point systems to protect their bottom line and their customers from fraud,” says T.J. Horan, vice president of fraud solutions for FICO. “This is not only a costly approach, it leaves some channels and products less protected than others."

At the same time, Horan says, "the monolithic, one-size-fits-all enterprise fraud system has been rejected by the market."

"Banks and other credit grantors want to adopt a scalable, customer-centric approach to fraud detection that works across all portfolios within the enterprise," Horan continues. "We’ve taken the market’s most advanced anti-fraud system and adapted it to this challenge.”

The platform’s fraud detection and case management capabilities can be extended with add-on software modules that further reduce the impact of fraud on customers. Many banks are now using FICO software to automatically contact customers on their mobile phone or preferred devices to resolve suspicious transactions instantly. FICO also offers solutions for stopping first-party and third-party application fraud as well as bust-out fraud, using social link analysis. Data management extensions expand the system’s ability to accept and monitor data from outside systems in real time.

FICO recently integrated technology from 41st Parameter to improve the FICO Falcon Platform’s ability to detect card-not-present fraud, and allow genuine transactions to go through without being blocked.

Tagged under Technology,

John Ginovsky

John Ginovsky is a contributing editor of Banking Exchange and editor of the publication’s Tech Exchange e-newsletter. For more than two decades he’s written about the commercial banking industry, specializing in its technological side and how it relates to the actual business of banking. In addition to his weekly blogs—"Making Sense of It All"—he contributes fresh, original stories to each Tech Exchange issue based on personal interviews or exclusive contributed pieces. He previously was senior editor for Community Banker magazine (which merged into ABA Banking Journal) and for ABA Banking Journal and was managing editor and staff reporter for ABA’s Bankers News. Email him at [email protected]

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