This recommendation comes at a time when speed-to-detection has become even more critical, given increasing efforts by criminals to exploit such emerging channels as mobile banking. In the Asia Pacific region, FICO estimates that the incidence of fraud will rise by 10-20 percent in 2013.
FICO asserts that to fight multiple and increasingly innovative fraud threats, banks need to avoid deploying a single, monolithic system and instead use a combination of existing and new analytics-based systems. This enterprise-wide approach must be designed to protect each channel, while linking them to provide centralized insight and control, and continuity in customer experience. This new approach emphasizes strengthening the weakest links in a bank's entire fraud protection system while building toward enterprise protection in a structured, incremental manner.
"Consumer confidence has become a key differentiator for banks, and the customer's experience when confronted with fraud is especially critical," said Dan McConaghy, president for FICO in Asia Pacific. "By taking an enterprise-wide approach, banks can earn their customers' trust with swift detection and customer contact, while also minimizing losses."
In FICO's view, the best way for banks to minimize disrupting their customers' lives is by combining predictive analytics to identify changing fraud patterns, business rules to stop known fraud types, link analysis to see broader patterns indicating fraud rings and case management to shut down fraud.
According to the 2012 CEB TowerGroup report Adoption and Investment in Financial Services Technologies: Enterprise Fraud Management, 32 percent of banks said they intend to adopt or replace their enterprise fraud management systems by 2016.
Susan Rivera, first vice president for BDO Unibank, the Philippines' largest bank in total resources, loans and deposits, said, "Our customers want both flexibility and security in our consumer products. Therefore, fraud risk and customer service is a very important balancing act for our bank. To ensure that our customers are protected while enjoying our product features, we will be one step ahead of them in addressing their needs and working hard to manage the emerging threats and challenges swiftly and painlessly."
In order to meet its clients' demand for enterprise fraud management, FICO plans to introduce a series of new solutions and partnerships. These new offerings will extend FICO's leadership in fraud protection even further. The company already offers the industry-standard suite of banking fraud management solutions, including FICO® Falcon® Fraud Manager for card fraud, debit fraud and e-payments — which protects more than 2.5 billion active payment card accounts for more than 9,000 financial services organizations worldwide — the FICO® Card Alert Service for ATM fraud, and the FICO® Merchant Monitoring Solution for acquirer fraud. FICO's fraud advisory services team works with leading lenders to help them develop world-class capabilities for preventing internal fraud, application fraud, first-party fraud, third-party fraud and acquiring fraud.
FICO details this new approach to Enterprise Fraud Management in a white paper, "What Is the Future of Banking Fraud Management?" which was released at the event. The white paper is available at www.fico.com/insights. More information on FICO's enterprise fraud approach is at www.fico.com/enterprisefraud.
FICO (NYSE: FICO), formerly known as Fair Isaac, delivers superior predictive analytics solutions that drive smarter decisions. The company's groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO's innovative solutions include the industry-leading solutions for measuring credit risk, managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world's top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. Learn more at www.fico.com. FICO: Make every decision count™.
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FICO, Falcon and "Make every decision count" are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company's Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2011 and its last quarterly report on Form 10-Q for the period ended June 30, 2012. If any of these risks or uncertainties materializes, FICO's results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.
FICO and "Make every decision count" are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.