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FICO: 20+ Years of Analytics Innovations to fight Fraud


FICO infographic shows 20+ years of analytics innovations protecting consumers from payments fraud. It highlights the most significant innovations in anti-fraud analytics for card payments, and offers interesting facts about payment fraud.



SAN JOSE, Calif. — March 12, 2014

FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today released an infographic showing how 20+ years of analytics innovations have protected consumers from payments fraud. The infographic tracks the evolution of real-time fraud monitoring for payment cards from its inception in 1992 through today. During that time, for example, payment fraud as a percentage of all credit card transactions in the U.S. has dropped by more than 70 percent. Payment Fraud Informatic FICO infographic highlights the most significant innovations in anti-fraud analytics for card payments, and offers interesting facts about payment fraud in major countries, including France, India, Russia and the UK. The innovations discussed are used in FICO® Falcon® Fraud Manager, which protects 2.5+ billion payment cards worldwide.

Highlights:
  • 1992: Real-time monitoring of credit card purchases by FICO® Falcon® Fraud Manager software utilizing transaction profiles that analyze transaction data to understand behavioral patterns for each account and recognize fraudulent transactions
  • 1993: Neural networks that are simple models of the human brain used to understand complex interactions between variables (e.g., transaction amount, location) to increase precision in identifying fraud
  • 1996: Merchant modeling to spot fraudulent merchant activity
  • 1999: E-commerce fraud modeling to protect merchants from card-not-present fraud by customers transacting on their websites
  • 2004: ID enhancement that strengthens identity fraud detection by using multiple sources of identity-validating data
  • 2006: Modeling of first-party fraud to recognize when people are committing fraud under their own names or invented names
  • 2007: Device profiling that utilizes transaction data associated with devices to detect ATMs under fraud attack on debit card networks
  • 2008: Self-calibrating technology that allows anti-fraud software to fine tune itself in real-time in response to shifts in transaction trends
  • 2010: Adaptive analytics that enable anti-fraud systems to adjust their models on the fly as fraud patterns change
  • 2013: Behavior Sorted Lists that improve the ability to identify suspicious transactions by building comprehensive pictures of each consumer's past behavior

The payment fraud infographic can be viewed and downloaded at www.fico.com/fraudanalytics.

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