As my colleague Brian Kinch noted in a recent post, Black Friday is the official kickoff to the holiday shopping season, and with the surge in spending comes an increase in card fraud. And while many people are familiar with the fraud analytics that protect cards, a newer defensive player is the interactive fraud alert that enables card issuers to automatically contact consumers in real time using their mobile devices.
In November, FICO clients in the Americas sent a record 13.9 million alerts to consumers, out of 23 million alerts sent worldwide that month. A single client submitted more than 950,000 fraud cases (suspicious activity) to the FICO Customer Communication Services Digital/Virtual Fraud Agent, resulting in more than 555,000 text messages and 420,000 voice strategies. The FICO Customer Communications platform “auto-resolved” approximately 50% of these, which means our automated Customer Communications System is doing the work of over 500 agents. On Black Friday alone, this client submitted over 80,000 cases to the FICO Customer Communications Service.
Here’s how the system works: When the client’s fraud system (typically FICO® Falcon® Fraud Manager, the industry leader) detects suspicious activity, our Customer Communications System sends a real-time fraud alert to the cardholder, using multiple channels (voice, text, and email). Using our system’s two-way interactions, cardholders can resolve the case themselves by indicating it is genuine card use. If the cardholder says it’s fraud, the call bridges into the client’s fraud call center. These multiple-channel, real-time applications are replacing batch alerts as the new industry gold standard.
Congratulations to the team for the strong performance of our system — and for helping to keep shoppers safe.