Search results

FICO today unveiled several solution upgrades that will help banks, lenders, fintechs and other institutions fight fraud and financial crime. These solutions bring unparalleled efficiency and machine learning capabilities to fraud, risk and compliance professionals. “We’re giving our customers new tools across the spectrum of our fraud and financial crime portfolio…

Just three short weeks ago during FICO World 2018, I had the opportunity to chair a panel of esteemed fraud practitioners to discuss Global Fraud Trends & Risk Control Imperatives. One of the questions I asked was: What’s behind the rise in application fraud we see worldwide? Check out this short video where panelist Matt Powell, Global Head of Consumer Fraud at…

As a drumbeat of data breaches becomes the new reality — 42% of organizations breached in 2017 were breached in the past — it’s easy for consumers to throw up their hands and brace themselves for becoming a victim of identity theft or other financial crime. However, there’s an obvious step you can take to protect your personal information: Don’t give it away to fraud…

Financial fraudsters are now becoming more brazen and manipulative, a disturbing trait most apparent in their perpetration of social engineering fraud (SEF). At our recent FICO EMEA Fraud Forum, SEF came up as a pressing issue in today’s UK financial market; it’s a broad category of chicanery that fraudsters use to manipulate victims into disclosing confidential finan…

Last week, the National Board for Customer Disputes in Sweden, after reviewing cases referred to them, have ruled that banks should be liable for so-called "push payment" fraud losses over a certain amount. Authorised push payment fraud, or APP fraud, is gaining in popularity in the criminal community. Customers are being tricked into authorising payments by persuasi…

In a recent blog post, I discussed how FICO is fighting application fraud by leveraging artificial intelligence (AI) and machine learning in fraud detection, including an overview of supervised, unsupervised, and adaptive analytics techniques and the need to balance transparency (explainable AI) with predictiveness. Most computer software encodes a set of rules — an…

In the past year, three major economies — the Eurozone, the USA and Australia — have gone live with real-time payments schemes, Canada will follow in 2019 and many other countries are on the road to implementing real-time schemes. Real-time payments schemes are not new – indeed Japan has had a scheme since 1973, Switzerland was the first European scheme in 1987, and…

For many years, bank fraud teams have had to worry not only about tackling fraud but also about the impact that security and fraud prevention measures have on their customers. We just completed a survey to ask thousands of consumers in the UK and US exactly what they think about those security measures and fraud processes that are designed to help them stay safe onlin…

Despite the constant news of data breaches and card compromises, it seems that millions of Americans think web and phone security measures are too complicated. This is borne out in a new survey conducted by FICO and 72 Point, who polled 2,000 U.S. adults found 81 percent don’t see the need for what they consider unnecessary security procedures. Some surprising stats:…

This is the second in my series on five keys to using AI and machine learning in fraud detection. Key 2 is behavioral analytics. Behavioral analytics use machine learning to understand and anticipate behaviors at a granular level across each aspect of a transaction. The information is tracked in profiles that represent the behaviors of each individual, merchant, acco…

This is the third in my series on five keys to using AI and machine learning in fraud detection. As in many professional fields (medicine, law, construction, etc.), there are generalists and specialists. The same applies to the development of behavioral analytics; there are general modeling techniques and highly specialized techniques. For example, your communicati…

The European Banking Authority have just published their final report and guidelines on fraud reporting under PSD2. There’s much to digest and understand, but one thing that stands out for me is categories of fraud that must be reported. While PSPs don’t need to report ‘payer acting fraudulently’ — also known as first-party fraud — they are required to report fraud t…