Fair Isaac's Newest Falcon One Solution Helps Banks Effectively Stop Fraud in Online Transactions
As part of Fair Isaac's Enterprise Decision Management (EDM) software and solutions, Falcon One for Online Access is another key element in the Falcon One suite of interlinking enterprise fraud solutions. The solution may be deployed individually, or cooperate with other existing or added Fair Isaac fraud protection systems such as Fair Isaac's Falcon™ Fraud Manager, which is used widely in the credit and debit card industries.
Falcon One for Online Access is a uniquely comprehensive system for protecting online financial transactions. It provides neural network-based transaction monitoring capability that learns customer behavior patterns and recognizes suspicious transactions, including patterns of transactions spanning online, debit, branch and credit transactions. The system leverages account knowledge from other companion fraud protection systems to provide complete coverage of customer assets and the channels that access them.
"There is no silver bullet in the fight against increasingly sophisticated online attacks," said Ted Crooks, vice president of Global Fraud Solutions at Fair Isaac. "Only a comprehensive system combining both the human and electronic aspects of online activity and integrating with other fraud systems can provide a lasting solution. It's customer confidence and fear in the balance, and at the end of the day, only comprehensive protection will deliver lasting success."
In addition to unique behavior monitoring tools, Falcon One for Online Access monitors the details of the electronic behavior of the Internet communication channel used during an online session. This monitoring continues throughout the session in order to thwart "man-in-the-middle" attacks where a legitimate session is highjacked by an imposter.
Using both its transaction behavior intelligence and communications channel monitoring, Falcon One for Online Access provides continuous feedback on session risk to the bank's web hosting system, allowing bank managers to determine the best level of intervention or confirmation at every level of risk. To assist with risk mitigation, Falcon One for Online Access provides optional transient passwords, an advanced identity authentication interview service, and a case management system for human or automated follow-up and confirmation of suspicious transactions.
"Online banking transactions are increasing, but security is still the number one consumer concern," said Jerry Silva, research director for the TowerGroup Delivery Channel practices. "While U.S. consumers like to self-serve, less than half of them feel it is safe to conduct financial transactions online. Banks need to overcome these fears if they want to use this channel to its maximum potential."
Leading advisory research and consulting firm TowerGroup estimates that online transactions in retail banking have increased from 2.4 billion in 2001, to 11.4 billion in 2006, and are expected to reach 24.4 billion by 2010 ("Customer Self-Service and Retail Banking in the U.S.: Rising Expectations, Challenges, and Opportunities," published February 2006).
Falcon One for Online Access also can play an important role in helping financial services institutions meet regulatory compliance standards, including guidance issued by the Federal Financial Institutions Examination Council (FFIEC). Regulators expect banks to use enhanced authentication or risk assessment technology when authenticating the identity of customers using Web-based financial services and achieve compliance with the guidance no later than the end of 2006.
About the Falcon One Suite
Falcon One for Online Access is the latest addition to Fair Isaac's Falcon One suite, which provides a common infrastructure allowing financial institutions to manage multiple, cooperating fraud solutions across various lines of business and numerous fraud types within their organization. The Falcon One system currently offers several other solutions that can be deployed individually or in combination, including Falcon Fraud Manager for credit card and debit card transaction fraud, and the Falcon ID solution for identity and first-party fraud protection. Falcon solutions protect 65 percent of credit card transactions worldwide, 85 percent in the U.S.
About Fair Isaac
Fair Isaac Corporation (NYSE:FIC) makes decisions smarter. The company's solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes and apply more intelligence to every customer interaction. Through increasing the precision, consistency and agility of their decisions, Fair Isaac clients worldwide increase sales, build customer value, cut fraud losses, manage credit risk, reduce operational costs, meet changing compliance demands and enter new markets more profitably. Founded in 1956, Fair Isaac powers hundreds of billions of decisions per year in financial services, insurance, telecommunications, retail, consumer branded goods, healthcare and the public sector. Fair Isaac also helps millions of individuals manage their credit health through the www.myFICO.com website.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac, including statements regarding its Falcon One for Online Access product offering and the benefits to be derived from this offering, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation, use and functionality of the offering, the risks that customers will not perceive material benefits from the offering, failure of the product to deliver the expected results, the possibility of errors or defects in the offering, regulatory changes applicable to the use of consumer credit and other data, and other risks described from time to time in Fair Isaac's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2005, and its quarterly report on Form 10-Q for the period ended March 31, 2006. Forward-looking statements should be considered with caution. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac's results could differ materially from Fair Isaac's expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.
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