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FNB, FICO fight card fraud

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 17 Apr 2014

FICO, a predictive analytics and decision management software company, has partnered with First National Bank (FNB) to unveil FICO Fraud Resolution Manager to help the bank communicate with customers when a potentially fraudulent transaction takes place.

"FNB is an innovator in the South African market, and deeply committed to its customers," said Hayley Kershaw, who oversees FICO's operations in Europe, the Middle East and Africa. "Few banks globally have taken fraud protection technology to the 'last mile' - immediate contact with the customer - but this will soon become a best practice."

According to a statement, using the FICO application, FNB can automatically contact a customer through voice calls and interactive SMS when a transaction is flagged as suspicious, usually reaching the customer while they're still at the point of sale. FNB reports that this has reduced the number of fraudulent transactions by 30%, for a total savings so far of more than R150 million.

Card fraud in SA grew 22% in the first nine months of 2013, compared to the same period in 2012, according to the South African Banking Risk Information Centre (Sabric). Sabric put 2013 card fraud losses at R366.8 million.

FNB had a need to quickly detect suspicious activity, says the bank. However, it states that it was often difficult to validate these transactions fast enough to block fraudulent activity. At the same time, the bank had to avoid blocking genuine transactions. With the FICO solution, FNB says it will be able to validate genuine transactions, focus on real fraud and improve customer service.

Currently, the bank says it is using the FICO Fraud Resolution Manager in its core banking solutions area to protect cheque card and debit card accounts. It will soon be deployed to cover the bank's entire 10 million South African cards. FNB has also deployed specific strategies for overseas and out-of-hours transactions, and will soon roll out the solution to other southern African countries.

FICO fraud resolution manager gives organisations the ability to process high volumes of cases simultaneously, performing investigations, shaping customer action and contact strategies, and reaching resolution in seconds.

It is the only application that provides a seamless connection between fraud risk analysis and contact strategy development, deciding the necessity, timing, channel and nature of action required to find more fraud, reduce losses and foster customer loyalty.

According to FICO, its Fraud Resolution Manager is part of the company's solution suite for enterprise fraud management, and can be easily integrated with FICO Falcon Fraud Manager, the world's leading payment fraud protection solution, which protects 2.5 billion payment cards worldwide.

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