Payment cards are changing. Whereas a plastic card used to access a single funding account, now we increasingly see cards—and very soon, mobile phones—that can access multiple funding accounts.
This trend not only increases personalization options, but also fraud detection capabilities, if you leverage a cardholder’s history of what funding accounts were used for which transactions. Fraudsters typically don’t have any prior knowledge of funding account selections. This makes it much more apparent when there’s unauthorized use of a multi-funding account payment device.
The act of choosing different funding accounts can be exploited by analytics for greater fraud detection, as I discussed in my last post. Through analytics, we would examine cross-funding account behaviors as well as variables that vary by funding account, monitor favorite merchants for each funding account, and determine the likelihood that a particular funding account would be chosen for a transaction.
At FICO World next month, I'll discuss these new analytic approaches in greater detail, at my session: Enhancing Fraud Detection with Multi-funding Account Analytics. I invite you to join us at the conference.