FICO Patents 8 New Analytic Techniques for Scoring, Fraud, Profit Optimization

Radial circle

MINNEAPOLIS—May 21, 2010—FICO (NYSE: FICO), the leading provider of analytics and decision management technology, today announced that it has been awarded 8 new patents by the U.S. Patent and Trademark Office. These patents, awarded to several members of the FICO Labs team, cover breakthroughs in credit score interpretation, fraud detection, credit line optimization and other analytic technologies.

On May 4, the company received a patent for a credit score estimation system that helps consumers understand their credit scores and how to take action to improve their credit scores. The invention includes a score estimating tool, a best action simulation tool, an easy error correction tool, and a score improvement tool. This technology is behind the FICO® Score Estimator available as an iPhone app and at

In April FICO received a patent for an invention that analyzes healthcare reimbursement claims, using a probability-based sequencing model. This invention improves the identification of potentially fraudulent or abusive healthcare providers. This invention was developed to be part of the FICO™ Insurance Fraud Manager system, the basis of FICO’s partnerships with the largest healthcare management organizations in the United States.

Three other recent FICO patents address the problem of fraud. The first provides a method for determining whether applications for credit originate from legitimate applicants or fraudsters. The second patent is for a system that will help detect and take action on mass compromise of ATMs. The system analyzes clusters of compromised cards, and will help card issuers improve block-and-reissue strategies. The third fraud patent was awarded for a mechanism that finds possible fraudulent transactions and also identifies potential fraud based on specific credit account data. These inventions were developed to be part of the FICO™ Falcon® Fraud Manager system, which protects some 65% of the world’s credit cards.

In the general area of analytic innovation, FICO was awarded a patent for a new method for simulating an analytic value chain. This invention uses analytics to determine how to optimize the profit of a portfolio of credit accounts by selectively extending credit line increases to individuals, based on simulation and development of “learning strategies.”
FICO’s other new patents are for a system that enables the configurable exchange of messages between software applications, and for a decision engine that facilitates the submission, receipt, and evaluation of a credit application in ASP mode.

"The analytic functionality enabled by the new patents is an important step in moving the industry from providing corporate and consumer clients with simple information access tools to supporting decision-making processes," said Dan Vesset, program vice president, Business Analytics Solutions, IDC. "These patents show FICO's commitment to advancing its focus on the decision management market by bringing some of the latest advanced in analytics from academia into the commercial arena."

"While many of the largest technology companies are just getting started with predictive analytics, we continue to advance the science," said Dr. Andrew Jennings, chief research officer at FICO and head of FICO Labs. "These new patents present a window into the innovative work we do every day to help our clients build their profitability while protecting their customers."

FICO now holds 92 patents. The company filed for 4 more patents in the past few months, and currently has about 160 patent applications pending in the United States and other countries.

About FICO
FICO (NYSE:FICO) transforms business by making every decision count. FICO’s Decision Management solutions combine trusted advice, world-class analytics and innovative applications to give organizations the power to automate, improve and connect decisions across their business. Clients in 80 countries work with FICO to increase customer loyalty and profitability, cut fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. FICO also helps millions of individuals manage their credit health through the website.

FICO Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business 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 the success of the Company’s Decision Management strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended March 31, 2010, and its quarterly report on Form 10-Q for the period ended March 31, 2010. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.

Media contacts


Katie O’Connell
+1 510-621-9832

Europe, Middle East & Africa

Darcy Sullivan
+44 (0) 7808-777-339

Asia Pacific

Saxon Shirley
+65 6422-7795

Latin America

Marisa Arribas
+1 786 482 7231

América Latina

Milla Delfino
+55 11 97673-6583

Take the next step

Connect with FICO for answers to all your product and solution questions. Interested in becoming a business partner? Contact us to learn more. We look forward to hearing from you.