UBS Card Center Wins Security Innovation Award with FICO AI

Congratulations to UBS Card Center on winning the Security Innovation of the Year award at the Retail Banker International Awards. UBS Card Center’s fraud team used the latest artificial intelligence and machine learning capabilities in the FICO^® Falcon^® Platform to stop 84 percent more fraudulent transactions last year than in 2015.

“We are combining our deep expertise in analyzing fraud trends and the latest breakthroughs in AI and machine learning from FICO to keep losses and false-positives low and customer satisfaction high,” said Marcel Drescher, Head of Fraud Services, UBS Card Center (shown above with Manuela Spillmann). “We are gratified by this industry award recognizing our success in stopping fraud.”

UBS Card Center processes roughly 25 percent of all credit cards in Switzerland. The need to optimise costs in the face of fierce competition meant UBS Card Center had to keep fraud write-offs to the very minimum. They were facing new fraud attack volumes but needed to uphold the highest standards for customer experience and satisfaction. This required the use of machine learning to minimize consumer interruptions while investigating more potential cases of fraud, all without adding staff.

To tackle this multi-dimensional problem, fraud experts at UBS Card Center used the free-form rule writing within the FICO Falcon Platform to create complex rules that deployed multiple AI techniques, including adaptive analytics. Adaptive analytics use the results of recent fraud investigations to automatically fine-tune the underlying neural networks in order to accurately reflect the latest fraud landscape. These custom rules, combined with the advanced analytics, were the only way to improve false-positives and fraud detection rates.

Using FICO AI and machine learning, UBS Card Center managed to investigate and resolve 42 percent more fraud alerts without bringing in new staff resources.

“UBS Card Center has reduced the amount of fraud write-offs per compromised card, stopped more fraudulent transactions and mitigated false-positive rates using the FICO Falcon Platform,” said Douglas Blakey, Group Editor Consumer Finance at Timetric Financial Services, which hosted the awards.