Fraud & Security Explore the Future of Cybersecurity Analytics at FICO World

Cyber Crime

Stopping a cyber attack before it becomes a breach requires a transformation in security capabilities and tools. Current solutions use pattern matching or signature-based rules to detect malware or malicious activity. This detection is easily bypassed with only slight changes by attackers. Organizations must evolve their tactical incident response approach by using advanced analytics and intelligence sharing to defend their companies.

That’s exactly what I’ll be exploring in a special session at FICO World 2014, November 11-14 in San Diego.

In my session with Vickie Miller, FICO’s information security officer, I will first give a primer of this new domain by discussing the basics of connected device communications, including DHCP, DNS, FLOW, and WEBLOG events, and show how the devices that our businesses depend upon can be taken over by malware and botnets.

You’ll see how FICO’s cyber analytics models leverage transaction profiling, collaborative profiling, behavior-sorted lists and self-calibrating analytic... [Read More]

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Collections & Recovery Hear How Citi Drives Growth in Debt Collection at FICO World

FICO World 2014 logo

Adopting and adapting sustainable, profitable growth in debt collection isn’t easy.  Consumer demands, regulatory protections and new technologies play an integral role in the management and day-to-day processing of debt.  Most of us understand this, and some more than others.

Debra Stabile is one of the people in the know.  As Managing Director and Chief Risk Officer for Citi Retail Services, Debra analyzes the evolution and impact of debt collection influences. She’s sharing all of it in “The New Normal: Adopting and Adapting to Drive Sustainable, Profitable Growth” at FICO World, at the Sheraton San Diego Hotel and Marina, November 11-14.

The list of debt management influences is long: evolving consumer behaviors, uncertain economic times, new regulatory protections, more diverse lending practices, payment choices and access to smarter technology lead the list. Do you know the keys to the consumer credit cycle? How do you optimize your organizational structure and... [Read More]

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Customer Engagement Mobile, Banking and Millennials – Not What You Might Think

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Many are saying mobile, mobile, mobile as the way banks must transact and communicate with Millennials. Mobile is certainly important, but FICO’s recent study of US banking consumers tells a more complex story.

While it is true that smartphone and tablet usage are significantly higher than with Boomers or Generation X, as you dig into how they actual are banking and want to bank, the story isn’t all mobile.

PCs/Laptops Trump Smartphones When you look at device usage, Millennials use PCs/laptops at rates similar to smartphones. Some 96% of Millennials regularly use PCs/laptops, and 90% regularly use smartphones; this drops to 63% for tablets. Some 70% of Generation X (35-49 year olds) regularly use smartphones, compared to 98% for PCs/laptops.

Mobile Apps – Not for all Millennials Millenials (at 26%) are far more likely to use a bank’s mobile application than Generation X (12%) or Boomers (3%). However, when... [Read More]

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Analytics & Optimization Popular Analytics: Analytics Changed My Life


I don’t consider myself to be particularly morbid, but for most of my adult life I assumed that I would not live to retirement age. The reason was simple: both my father and my father’s father died in their early 60s. My grandfather died of cancer that was most likely caused by the environment in which he lived and worked. My father died of rheumatoid arthritis, a disease whose cause is still poorly understood but that is not believed to be genetically linked.

Nevertheless, without ever giving the matter a whole lot of thought, I lived my life – making decisions about everything from my career to my investments to my children’s education to estate planning – assuming that I wouldn’t actually be around to see the fruits of those decisions.

That was, until I stumbled upon... [Read More]

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Customer Engagement FICO World Preview: Is Your Customer Engagement Compliant?

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Emerging technologies are improving the ways companies contact and communicate with customers. But just when technology is making it easier to deliver “right message, right time, right channel,” a changing regulatory landscape is adding new layers of complexity.

While managing customer engagement strategies for customer service, fraud detection, marketing and debt collection, companies face a number of regulatory landmines. How you handle these myriad regulations depends on a number of factors. Regulations vary by communications type—for example, there are different rules for customer contact via email vs. mobile phone. Regulations also vary according to where you send the message (e.g., home vs. business), how you got the consumer contact information, the purpose of the communications and whether the contact is permissions-based.

So what’s a compliance-flummoxed company to do? For ideas, watch the on-demand FICO World Preview Webinar, “Customer Communications: Clearing the Regulatory Hurdles.” In it, FICO’s Vance Gudmundsen, Regulatory Counsel,... [Read More]

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Risk & Compliance FICO World 2014 Preview — Outlook on Consumer Credit Health

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With FICO World 2104 just a few weeks away, we are previewing some of the upcoming sessions via webinar to whet the appetite of attendees and help the decide which sessions to attend at FICO World.

One of the hottest topics on many people’s minds these days is the current state of consumer credit quality and what the outlook may be for the year ahead. Rachel Bell, Sr. Director, Analytic Consulting at FICO, will be joined by Cristian deRitis, Sr. Director, Consumer Credit Analytics at Moody’s Analytics this Wednesday October 29th at 9:00 am PDT/12:00 pm EDT/4:00 pm GMT/UTC for one hour to give a preview of recent data we collected on this important topic.

Some of the questions we will be answering during our webinar are: • What key factors will drive expansion of consumer credit? • What is the impact of consumers continuing to deleverage? • What are the key... [Read More]

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Risk & Compliance Credit Research Part 3: The Recession and Mortgage Delinquencies

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I’ve been blogging about the increase in US mortgage charge-offs during the Great Recession and its negative impact on homeownership. As the economy continues to recover, it is likely that lenders will start to relax their underwriting criteria—early indications of which have been confirmed by the OCC’s most recent Survey of Underwriting Criteria. Even so, it is unclear how long it may take before we observe a substantial uptick in the homeownership rate.

Why? In part, because there will still be a greater presence of delinquencies and other derogatory information on consumer credit files than before the recession. These delinquencies, especially in a relatively recent time period, equate to higher credit risk, which may give lenders pause in underwriting new mortgages for those borrowers.

So how quickly are delinquency rates recovering? First, let’s look at consumers with mortgages who had one or more 60-day delinquencies or worse on a mortgage... [Read More]

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Collections & Recovery Using Speech Analytics to Drive Collections Performance

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Back in February, my colleague Morgan Nagle blogged about how speech analytics can potentially transform debt collection call center tactics by monitoring and analyzing every collector/consumer interaction to drive compliance, more payments and even customer satisfaction. In short, organizations using speech analytics can deploy rules to guide agents, set appropriate performance baselines and identify behavior or regulatory issues before they turn into problems.

The benefits of speech analytics don’t need to stop there. Consider all the rich consumer descriptive data that’s collected during these calls, not to mention historical data about those consumers. Organizations should be asking themselves: “Are we really doing anything meaningful with all this data?”

Simply analyzing “what’s happening” is good. Thinking about “what do we do next” is better – that’s when the vast potential of speech analytics can be realized.

For example, predictive analytics mine phonetic data for complex, subtle conversational characteristics that can be... [Read More]

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Fraud & Security Taking Cybersecurity Analytics from Finance to Defense

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Earlier this week I attended my third Computational Cybersecurity in Compromised Environments (C3E) Workshop. This invitation-only workshop draws top cybersecurity researchers to create innovative new methods for solving problems of critical importance to the US government in cybersecurity.

My personal involvement in cyber analytics goes back several years – more recently you’ve seen my blogs on our new cyber analytics product. The connection between fraud and cybersecurity makes perfect sense, especially as we are bombarded with news of cyber attacks on banks and merchants.

Being at C3E is a real treat, allowing a rare collaborative opportunity for top experts across government, industry, and academia to address challenging problems in cybersecurity. This year we focused on two problems: security by default and data integrity.

In the area of data integrity, I gave a keynote talk on state-of-the-art analytic methods for ensuring data integrity in the financial industry. I shared FICO’s best... [Read More]

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Collections & Recovery Regulators Hash Out Debt Collection Compliance at FICO World

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Keeping up with the wave of regulatory changes in the debt collection market is no easy task. That’s why we’re hosting representatives from the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB), along with a legal expert, at next month’s FICO World panel, “Debt Collection: Staying on Top of the New Regulatory Landscape” (under the Regulatory Compliance track).

This all-star panel, which I’ll be moderating, will cover a range of current regulatory topics in the debt management space. We’ll discuss hot-button issues such as the CFPB’s advance notice of proposed rulemaking, vendor management, rising consumer complaints, data integrity and recent enforcement actions. And of course, we’ll invite attendees to ask our expert panel their most pressing questions.

In addition to this FICO World panel, I encourage you to check out sessions in our Debt Management track. We’ve invited a number of clients to share their experiences and successful... [Read More]

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