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First Look – FICO Fraud and Compliance Solutions


Continuing with product announcements at FICO World, next up is the new products for fraud prevention and compliance. Financial crime is on the minds of consumers right now with 2/3 worrying about having their credit card data compromised or having their accounts used fraudulently. FICO has launched a new FICO Consumer Fraud Control product. This allows specific card management scenarios like controlling how much a card can be used and on what, making sure it is not used inappropriately etc. The new product has features like:

  • 2 factor or 2 element controls for specific transaction types
  • Support for recurring transactions
  • Temporary suspension of controls to allow a transaction
  • Integration so issuers can use the input of a consumer in their fraud detection

All of this is running on mobile devices, increasingly the preferred banking environment for consumers. This focus on mobile devices also means that understanding these devices can help in an overall fraud solution. FICO has launched new Mobile Device Security Analytics that combine contextual and device data as well as streaming data to identify where devices are and what they are doing. This behavioral profile can be fed into fraud detection for cards linked to those devices. It can also be used to improve the profiling and grouping already being used to detect fraud – Falcon Fraud Manager does a lot of work to identify what kinds of transactions might be normal for someone like you and this mobile data can become part of this analysis.

Other products include:

  • New Customer Communication Services designer makes it easy to build customer engagement applications quickly with automatic validation, text to voice and other elements.
  • The Identity Resolution Engine is designed to integrate disparate and incomplete data, organize this into people places and things, uses these to resolve identities to support visualization of relationships for investigations for fraud rings, drive graph analytics to automate social network analysis and create a single view of the customer.
  • FICO recently acquired Tonbeller for Know Your Customer, Anti-Money Laundering and Case Management. These solutions are appealing to FICO because they scale across organizations and throughout the lifecycle while also supporting non-banking customers in insurance or for general corporate compliance and business partner management. Plans for Tonbeller involve best practice sharing, using pooled data to prioritize investigations and seeing where behaviorial profiles differ from the KYC data.

All this is part of a move toward Enterprise Fraud Management with a central fraud hub that detects and prevents fraud across multiple channels and provides fraud-aware communication and integration for other solutions.

One final fraud and abuse product is FICO Falcon Assurance Navigator is a new product designed to detect and manage fraud in the procure to pay process. Driven by new federal regulations, this product leverages FICO’s fraud technology and expertise from Stanford to track 100% of transactions to prioritize those that need to be investigated, applying analytics and rules based on different compliance regimes (federal grants v other university funds for instance). It can check POs in advance as well as invoices later, check time and expenses and integrate with procurement.