All posts by Scott Zoldi

Fraud & Security AI Meets AML: How the Analytics Work

Brain with AML highlihgted in neural pathways
Feb152017

The focus on financial crime, and the money laundering that funds terrorist attacks and other criminal activities, has forced the industry to look for smarter approaches. In the previous posts in this mini-series, TJ Horan noted that AI is the newest hope for compliance, and Frank Holzenthal explored the benefits that AI can bring to compliance officers. Now it’s my turn, and I’m going to explore the AI and machine learning technologies my team has integrated into the FICO TONBELLER Anti-Financial Crime Solutions. We have built on top of the FICO TONBELLER solutions using FICO’s battle-proven and patented artificial intelligence and machine-learning algorithms, which are used in FICO Falcon Fraud Manager to protect about two-thirds of the world’s payment card transactions. Industry experts have begun to realize the significance of analytics in combatting anti-money laundering. For instance, Aite Group LLC in its 2015 report Global AML Vendor Evaluation noted that... [Read More]

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Analytics & Optimization My Keynote World Tour Wrap-Up: “Analytics Will Rock You”

Dr. Scott Zoldi
Jan302017

In my role as FICO’s Chief Analytics Officer, one of the most exciting parts of my job is being asked to speak at industry and customer events all over the world. It’s truly an honor, and a fascinating opportunity to see, hear and appreciate the analytics topics at the top of audience members’ minds. One thing is for sure: analytics are rocking every corner of the world we live in, and audiences across industries are eager to learn more. Analytics rock our assumptions  Predictive Analytics World/New York: I was thrilled to keynote at this event, which focuses on analytics across the broad swath of financial services. I talked about using the FICO fraud data consortium to determine when data shifts can invalidate the models and, more menacing, when these shifts reveal subtle new fraud patterns that can indicate the work of fraudsters and cyber criminals, who know how to go... [Read More]

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Customer Engagement Analytics in Action: Yarra Valley Water and Application Processing

Yarra Valley Water logo
Dec222016

As 2016 draws to a close, I am grateful for the many, many ingenious ways customers use FICO® products to solve business problems. Clearly, FICO World 2016 was a bonanza of an opportunity for me to learn exactly how. Customers traveled to our event, held last April in Washington, DC, from all over the world. The folks from Yarra Valley Water, in Melbourne, Australia, made one of the longest journeys, and I enjoyed hearing the retail water utility’s story at FICO World’s closing panel discussion. Yarra Valley Water uses FICO® Blaze Advisor® decision rules management system and FICO® Decision Management Suite to reduce the time required to the water application process from months to minutes, without adding staff. That’s pretty amazing––watch the video below. An early adopter of automation Yarra Valley Water provides water and sewage service to 1.8 million residents and over 50,000 businesses. In 1995, it worked with... [Read More]

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Analytics & Optimization 4 Analytic Predictions for 2017 – From Killer Devices to AI Hype

Hand holding analytics
Nov302016

In many ways I think 2016 was the year that analytics hit the mainstream. At cocktail parties and in coffee shops, 2016 has been the year that we data scientists suddenly felt a bit like – dare I say it? – rock stars. A quick Google search provides a fascinating data point: “analytics 2015” returned 28.6 million hits “analytics 2016” returned 52.3 million hits Suffice it to say that in 2017, I believe that analytics, and the many domains it influences, will be a non-stop hit machine in terms of generating news headlines and ideas that fascinate us. Here are my predictions: 1. Security/IoT: Is your video cam no longer your friend?  In light of the recent Dyn attack, will 2017 be the year that your IoT device will turn on you? (Think Westworld, Humans, Terminator.) I think the answer is “yes.” In my recent blog, “Real talk: The imminent and... [Read More]

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Fraud & Security It’s Time to Get Real About IoT Security

Fraud locks
Nov042016

The last few years have seen a surge in everyday devices coming online: coffeemakers, refrigerators and beer kegs, to name a very few, each with their very own IP addresses. And those are just within your kitchen. Collectively called the Internet of Things (IoT), these devices are indeed game-changers. But it’s no wonder Gartner informs us that in its Hype Cycle for Emerging Technologies, 2016, IoT is currently at the peak of inflated expectations. Manufacturers are more than happy to fulfill consumer demands to connect everything to the Internet. Mirai strikes, once, twice, thrice As it always happens, however, in the rush to win customers, ease of use or time to market trumps safety and security. This was abundantly clear on October 21, when US and European internet traffic was significantly disrupted by a Distributed Denial of Service (DDoS) attack on Domain Name System provider Dyn. This attack impacted at... [Read More]

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Analytics & Optimization Artificial Intelligence: Find it Right in Your Own Backyard

Scene from The Wizard of Oz
Oct262016

It seems like you can’t spend more than a minute or two reviewing online articles or social media without stumbling on something about artificial intelligence (AI) or machine learning. It’s the hottest thing since the iPhone. But while AI is heralded as amazing new technology, it is in fact an amazing 30+-year-old, proven technology. Like Dorothy in the “Wizard of Oz,” you don’t really have to look much further than your own backyard to find AI––specifically, in your own wallet, mobile or otherwise. Machine learning and AI are a prominent part of banking and processing payment cards, not just reserved for self-driving cars and computers that can win at Jeopardy. In banking, machine learning not only improves predictions, it is effective for improving subsequent decisions. Machine learning has a presence in many of our analytic models at FICO that are widely used in the financial industry. Here are a few... [Read More]

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Fraud & Security Do You Know Your Cyber Score?

National Cyber Security Awareness Month logo
Oct182016

There’s one piece of information that every financially savvy American knows: their FICO® Score. And if that consumer is looking to secure any type of credit, the party on the other end of the transaction will use the FICO Score to critically inform an important decision: should my organization assume business risk by transacting with this person? Now, in conjunction with National Cybersecurity Awareness Month, FICO is launching the new FICO® Enterprise Security Score (ESS), a metric that quantifies the vulnerability of an organization to cyber attack. This score can be used by an enterprise to understand its cyber risk and shore up defense gaps. The FICO Enterprise Security Score can also be used as an assessment tool by third parties such as cyber insurance providers and potential business partners. A score that quantifies cyber risk Scores and decisions are a big part of FICO’s DNA, reaching back to the... [Read More]

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Fraud & Security Rise in E-Payments Fraud Demands New Analytics

Fraud locks
Sep212016

Online banking electronic payments fraud is on the rise, as fraudsters explore security gaps in the emerging banking channels. For instance, data released by Financial Fraud Action UK, shows that UK online banking fraud losses increased by 38% in 2014 from 2013, and by 64% in 2015 from 2014. The rapid growth of fraud losses calls for an effective e-payments fraud prevention solution and one that can adapt to varying fraud patterns. In early 2013, we launched the first FICO Retail Banking Payment model on the FICO® Falcon® Fraud Manager 6 platform, a model designed to detect fraud in e-payments (ACH, Swift, BACS, etc). Since then our Retail Banking fraud solution has steadily gained worldwide adoption, with clients in North America, Europe, South Africa, mid-East, and Asia. Our Retail Banking model is empowered with many advanced analytics patented technologies.  As I blogged previously, one distinguishing technology is online self-calibrating models. ... [Read More]

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