Collaborative Profiling

Predicting multi-dimensional consumer behavior in real-time driving precise fraud and financial crime detection.

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Value of Collaborative Profiling

Collaborative profiling helps organizations prevent fraud and stop money laundering

FICO helps organizations move beyond the academic and implement AI and machine learning that solve real-world business problems. FICO’s collaborative profiling technology is leveraged with great success across our payments fraud and financial crimes solutions.

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Benefits and components

Benefits of Collaborative Profiling

Archetypes are the cornerstone of collaborative profiling
Think of archetypes as the “elements” in the periodic table of customer behaviors. Real customers are “compounds,” composed of a flexible mixture of archetypes. At a given point in time, a customer is composed of multiple archetypes. And just as scientists are still discovering new elements on the periodic table, FICO scientists have discovered the secret sauce to derive latent — or not yet discovered — archetypes. This analytic methodology provides a powerful, and proven, approach that contrasts with typical customer segmentation, where each person is forced into one or another hard category, often by external demographic variables or arbitrary rules.
Real-time and dynamic behavioral profiling are critical to rapid and accurate detection
Because collaborative profiles work in data streams, archetype allocations are updated in real-time with each new transaction. This allows models – such as those for detecting fraud and financial crime - to recognize whether any new, previously unseen transactional behavior should be viewed as suspicious or simply a new, legitimate behavior. Collaborative profiling technology quickly determine that previously unseen transactional behavior is "normal" or conversely “abnormal” even if the customer has never performed that specific transaction before.
The world’s largest consortium of payments data powers FICO’s analytic innovation
FICO’s collaborative profiling leverages the power of the FICO® Falcon® Intelligence Network, the world’s largest consortium of payments data, composed of data from over 9,000 organizations, over 2.6 billion accounts, and with fraud and non-fraud exemplars that are continually updated with new payment-related behavioral details from around the globe. With this data lake, FICO’s team of over 60 dedicated fraud and financial crime data scientists perform extensive research — innovating with machine learning and artificial intelligence to produce over 100 fraud-specific patents tailored to fight a multitude of financial crimes schemes. By leveraging our learnings from data that spans thousands of institutions, FICO’s models provide accuracy, self-learning, and longevity.

FICO models utilize patented Collaborative Profiling technology

Behavioral collaborative profiling provides advanced analytic capabilities to understand customer behavior shifts in real time, empowering institutions to better detect behavior that is likely to be suspicious.

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Payments Fraud
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FICO Uses Bayesian Learning to Derive Archetypes for Collaborative Profiling

FICO leverages Bayesian learning to derive archetypes in the latent feature space of symbol loadings. These archetypes act to boil the symbol history into a set of real-time adapting behavioral archetypes. These archetypes help us understand customers based on latent features to recognize which other customers they are most similar too, and to detect if an individual’s actions deviate from what’s expected and if a deviation exists, it raises a red flag in the unsupervised adaptive model.

Corporate Card Fraud Improvements

These improvements illustrate how FICO is using behavioral collaborative profiling analytics to significantly reduce corporate card fraud losses while improving corporate users’ customer experience with fewer false positive interruptions.

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Connect with FICO for answers to all your product and solution questions. We look forward to hearing from you.