Latest FICO Fraud Model Helps Identify 50% More Scam Transactions
With over 120 patents, the FICO® Falcon® Platform helps financial institutions detect and prevent fraud for more than 2.6 billion payment accounts worldwide
SAN JOSE, Calif., May 26, 2021 /PRNewswire/ --
Highlights
- FICO today announced the latest release of the FICO® Falcon® Fraud Manager model for Retail Banking.
- The FICO® Falcon® Fraud Manager model for Retail Banking leverages machine learning to enhance scam detection in tandem with Falcon Fraud Manager's existing third-party fraud detection score to better enable banks to detect and prevent authorized push payment (APP) scams.
- The new Scam Detection Score leverages targeted profiling of customer behavior to help FICO® Falcon® Fraud Manager clients detect 50% more scam transactions.
- Powered by more than 120 patents in fraud-specific machine learning and AI, the FICO® Falcon® Platform helps financial institutions detect and prevent fraud seamlessly, in real-time. More than 2.6 billion payment accounts worldwide are protected by Falcon.
Today, FICO, a global analytics software provider, announced the latest release of the FICO® Falcon® Fraud Manager model for Retail Banking, which leverages machine learning to detect and prevent scams by adding a Scam Detection Score to Falcon Fraud Manager's existing third-party fraud detection score for retail banking transfers.
"The proliferation of mobile payment apps and new open banking standards in the wake of the pandemic have caused authorized push payment (APP) scams to grow," said Scott Zoldi, chief analytics officer, at FICO. "FICO has been following how the sophistication of scams are evolving at breakneck speed and we are strategically innovating to offer our clients in retail banking the cutting-edge scam detection analytics needed to combat today's criminals."
APP scams manipulate customers into sending money to an account controlled by scammers. They can take multiple forms, including mobile game payments, online purchases that never arrive, or text messages from someone the victim mistakenly believes is a friend, business partner or bank official. According to the U.S. Federal Trade Commission (FTC), more than 350,000 Americans reported losing a total of more than $245 million to fraudulent online purchases in 2020, including a record high to scams that started on social media. In the UK, UK Finance reported a 5% increase in losses to such fraud in 2020 with reported losses of £479 million. These scams have proved particularly difficult to detect as the person initiating the payment is the legitimate account holder – who has been tricked into making the payment.
FICO's new Scam Detection Score helps Falcon customers overcome the challenge of detecting authorized push payment (APP) scams, using the distinguishing characteristics revealed by the FICO® Falcon® Fraud Manager model for Retail Banking to identify 24 times the number of fraudulent transactions on favorite devices. While banks and card issuers today have used the Falcon Retail Banking fraud score to detect both fraud and scams, the new Scam Detection Score further detects 50% more scam transactions at a 0.5% transaction review rate.
Powered by more than 120 patents in fraud-specific machine learning and AI, the FICO® Falcon® Platform helps financial institutions detect and prevent fraud seamlessly, in real-time. More than 2.6 billion payment accounts worldwide are protected by Falcon.
For more information on the latest FICO fraud model, read blog.
For more information on FICO's portfolio of fraud solutions, visit Fico.com/products/fraud.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
Learn more at http://www.fico.com
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SOURCE FICO
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