Tag Archives: Infographic

Collections & Recovery Meet the Customer-Centric Collector – A Superhero for Our Time

Sep112014

With the challenges in the debt management space these days, it sometimes seems like you need superpowers to succeed. But before you start looking for a radioactive spider or a handy gamma-ray machine, check out FICO’s tongue-in-cheek new infographic, The Customer-Centric Collector Rises. (Yes, I realize I just mixed my Marvel and DC metaphors, comics fans.) The superpower we’re talking about is the ability to understand how to motivate a customer to pay, using the right message and the right channel. Rather than brute force, the customer-centric collector uses their understanding of the customer to get great results. This ability comes just in time, as overdue debt grows, traditional tactics falter, customers complain and regulators turn up the heat. As our infographic notes, some 35 percent of US adults with a credit file have debt in collections. About 20 percent of delinquent debt is collected, down from 30 percent a... [Read More]

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Fraud & Security In European Fraud, Size Isn’t Everything … Or Is It?

Aug142014

There’s been a great deal of interest in—and even some confusion with—the findings of our latest European fraud map. Some observers have commented that, whilst the card fraud trends may be interesting, the underlying messages are somewhat mixed. The European card industry has long praised chip and PIN technology as the antidote to historically spiralling card fraud losses in areas such as counterfeit and lost and stolen—and now (finally) the US has followed suit with its own chip card issuance and acceptance plans. And yet, the overall levels of European card fraud, in absolute terms, are back on the rise. This seems like a contradiction. Dig a little deeper, and it is evident that the robust European chip and PIN defence saw fraud attacks evolve and mutate rather than be eliminated. Just like a snow plough on a snow-laden road, whilst the path immediately ahead is cleared, the displacement merely... [Read More]

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Fraud & Security European Card Fraud Map Shows Record High Losses in 2013

Aug042014

Credit card transactions are generally the best-protected credit channel, with wave upon wave of new technology and methodology used to strengthen protection. So it may come as a shock to learn that card losses in Europe are going up, not down. That is made clear by FICO’s latest map of card fraud in Europe, which shows card fraud losses in 2013 for 19 European countries reached €1.55 billion, slightly more than the previous peak in 2008. While the UK had the highest losses, mainly fuelled by card not present (CNP) fraud, France and Greece both had higher ratios of fraud losses to card sales, at 7 basis points (.07 percent). And fraud grew fastest in Russia, jumping nearly 28%. My colleague Martin Warwick provided the commentary for the map, which is based on data from Euromonitor International. As Martin notes, the rise in losses may serve as a wake-up call,... [Read More]

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Risk & Compliance Deleveraging Continues for Youngest Consumers

May052014

Recently, my team did some analysis of consumer credit risk trends and behaviors over time, focusing on debt breakdown by age. Since there was tremendous interest when I blogged about similar research last year, I wanted to share some of the latest findings. Compared to the prior year, we continue to observe slight deleveraging across the total population. The average total debt for consumers in October 2012 was $80,812. In October 2013, that number inched back 3.1% to $78,274. Breaking out those debt numbers by age, we observe a clear relationship in the relative change of deleveraging: the older the demographic, the smaller the observed reduction in debt.   For young consumers, the continued decrease in outstanding debt is being driven by lower average outstanding mortgage debt and lower average credit card debt. These debt categories yielded a reduction of 13.3% and 8.1%, respectively. In both timeframes, student loan debt still accounts for a little more than one-third of their total outstanding debt.1   The “credit card-less” rate for...

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Risk & Compliance Infographic: Keep the Car and the Paintings, I’ll Take the Gold!

Apr162014

Cars, diamonds, gold, stock, art, baseball cards – which collateral holds most sway with bankers when it comes to approving a consumer loan? We included this somewhat unusual question in the latest installment of our quarterly survey of North American risk managers. We asked bank risk officers which type of collateral, other than real estate, they would prefer for consumer loans, if they had their druthers. Respondents had six choices, ranging from very traditional to not so traditional. Answers are shown in our infographic:   Perhaps not surprisingly, gold was the big winner. Au (as my high school chemistry teacher would say) was favored by 41 percent of respondents. The next most compelling form of collateral was stock certificates (29 percent), followed by cars at 14 percent. Does that mean bankers have more faith in the stock market than the used-car market? Further down the list were diamond jewelry (10 percent) and works of art (4 percent). Bringing up the rear was a baseball card collection at 2 percent. So don't plan to leverage your...

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Fraud & Security Infographic: How Fast Is Card Fraud Detected? 5X Faster Than the Eye Blinks

Apr032014

In financial services, many things are described as “real time,” including numerous online banking and payment transactions. However, there is no universal definition of real time. Is it real time if a transaction or event takes place within 10 seconds? One second? Certainly most people would say the time it takes to blink is fast enough to be considered real time. We’ve just developed a new infographic that may make you re-evaluate what real time means. It illustrates how fast FICO® Falcon® Fraud Manager detects bogus credit and debit card transactions—in just 40-60 milliseconds. That’s 5X faster than the average person blinks. It’s faster than a car airbag inflates. It’s even faster than a helicopter blade rotates. Click on the infographic above to view it in full or go to www.fico.com/realtime. Perhaps even more impressively, during those 40-60 milliseconds, the Falcon software completes 15,000 fraud detection calculations based on many pieces of data associated with each payment card swipe – including transaction amount, merchant profile,...

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Fraud & Security Infographic: History of Innovation in Payment Card Fraud Analytics

Mar122014

We recently put together an infographic showing the evolution of real-time analytics for payment card fraud detection over the last 20 years. The infographic also shares notable facts about payment fraud in major countries, including France, India, Russia and the UK. For example, since 1992, US payment fraud as a percentage of all credit card transactions has dropped by more than 70%.

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Risk & Compliance Infographic: What Does A High Credit Scorer Look Like?

Feb262014

New myFICO® research provides revealing insight into the credit profile of US consumers with the highest credit scores, specifically those with FICO® Scores of 750 and above. These FICO Score “high achievers” account for 37% of scorable consumers, or roughly 74 million individuals. The research reinforces that following responsible credit behaviors, like paying bills on time and keeping balances low, remains the most effective path to a high FICO Score.

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Fraud & Security Card Fraud Trends and Predictions: Bank ATMs a Growing Hotspot

Feb182014

2013 was certainly not a shrinking violet in terms of card skimming and associated card fraud scams. With 2013 card compromise data in hand, I thought I’d share the latest year-over-year trend breakdowns and offer a few predictions for the year ahead (an update to my post last year on ATM fraud trends).   The chart above reflects ATM points of compromise within the United States that were analyzed by FICO® Card Alert Service. Looking at overall volume of activity, we instantly see a continued increase in card skimming at bank-owned ATMs over the past couple years. As this segment increases each year, point-of-sale (POS) card and PIN skimming has somewhat diminished in comparison. You might wonder: “How is it possible that POS is contributing less towards card and PIN skimming when we are staring down on one of the largest retail data breaches in history?” Keep in mind that the data used to create this chart is reflective of fraud spend at ATMs only. Most of the recent publicized data intrusions did not develop into wide-scale PIN fraud, aside from...

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Risk & Compliance US Credit Quality Continues to Inch Forward

Feb032014

We recently crunched the data from the latest national distribution of FICO® Scores. Our findings reveal a continued slow but steady improvement in US consumer credit quality.   Though the median FICO® Score has remained 711 since 2011, there are positive signs in score movement in the most recent timeframe, from October 2012 to October 2013. Specifically, we continue to see that the number of consumers in the lowest score ranges is shrinking. In fact, it’s hit its lowest point since peaking in October 2009. In October 2013, 24.0% of consumers scored less than 600, down from 24.4% in October 2012. We’ve almost reached our pre-recession benchmark of 23.8% in October 2007. The score movement table below reinforces this general positive shift in credit health. The table shows how the scores of different pockets of consumers migrated between October 2012 and October 2013. In general, more consumers are moving to higher score intervals than to lower score intervals. Many consumers, however, remain in their current score band.    Many risk...

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