Enterprise-wide system protects debit and credit cards, deposit accounts and loans amid increasing fraud attacks
LONDON—July 9, 2014—FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced that Garanti Bank, Turkey’s second-largest bank, has won the 2014 FICO Decision Management Award in the Fraud Control category. Garanti uses the FICO® Falcon® Platform to deploy enterprise fraud management across credit cards, debit cards and current / demand deposit accounts (DDA). The bank also uses FICO application fraud models to detect potential fraud in credit card and consumer loan applications. Among the results has been an increase in detected credit and debit fraud cases, enabling the bank to keep fraud losses low even while the number of fraud attacks doubled.
Credit card and debit card fraud attacks have increased significantly in recent years, with Europe’s credit card fraud problem reaching a new high in 2013, according to data from Euromonitor International. In order to ensure its defenses remain watertight, in 2013 Garanti Bank expanded its use of FICO Falcon Fraud Manager to cover all transaction channels for its current/demand deposit accounts (DDAs), in addition to debit and credit cards. The bank’s enterprise fraud management approach now covers its distribution network of 984 domestic branches in Turkey, as well as its eight foreign branches in Cyprus, Luxembourg and Malta, and three international representative offices in London, Düsseldorf and Shanghai.
“Garanti Bank is the first bank in Turkey to integrate different fraud controls in the same department, using a customer-centric approach,” said Beyhan Kolay, senior vice president for anti-fraud at Garanti. “Banks around the world are trying to take a more customer-centric view in fraud management. Our approach enables us to carefully manage the impact of fraud management controls on customers, so that we can not only protect them but also keep them engaged, thereby making them more profitable for us.”
Garanti’s anti-fraud team now uses FICO Falcon Fraud Manager to protect multiple accounts for each customer, at the customer level. Supervisors can write and define rules and improve the agility of their parameters, which enables the bank to respond faster to high-priority risks and to stop flash fraud as it’s unfolding.
If a risky transaction is identified, Garanti can now create a new case, temporarily block the card and send an SMS or other notification to the customer, all at the same time. Multiple actions give the bank’s analysts a chance to make contact with the customer much more quickly, and through the customer’s preferred channel, giving them a better experience.
Garanti also deployed new credit and debit predictive models from FICO. Garanti can now combine risk patterns with online non-financial transactions, such as phone number and address changes, that can indicate potential fraud.
Application fraud detection is challenging in Turkey, where banks demand relatively little documentation in order to simplify the lending process for customers. At the same time, new regulations and rising criminal activity make fraud prevention more important. Garanti deployed new application fraud models from FICO for detecting credit card and consumer loan application fraud. In the first six months of use, FICO’s application fraud models have been able to detect 80 percent of fraudulent third-party and first-party applications.
“The Banking Regulation and Supervision Agency requires Turkish banks to meet strict quality and control standards with their fraud detection practices,” said Kolay. “This project has enhanced Garanti’s fraud controls in terms of both technological capability and case management, as well as enabling us to cover such new areas as branch transactions.”
“Over the last few years, Garanti has shown that they are the innovative bank in their region of Europe,” said David Bannister, editor of Banking Technology, who was a member of the panel of independent judges. “With this project, they didn’t just replicate what was being done elsewhere, they took a goal-oriented approach that resulted in a groundbreaking project.
About the FICO Decision Management Awards
The FICO Decision Management Awards honor companies that have achieved outstanding business results using FICO’s predictive analytics and decision management solutions. Winners will be featured in presentations at FICO World 2014 in San Diego, November 11-14.
Winners were selected by a panel of esteemed industry analysts and journalists: Tom Davenport, co-author of Competing on Analytics; Brian McDonough, research manager in IDC's Business Analytics Solution research service; John Rymer, vice president and principal analyst serving Application Development & Delivery for Forrester; and David Bannister, editor of Banking Technology.
FICO (NYSE: FICO) is a leading analytics software company, helping businesses in 90+ countries make better decisions that drive higher levels of growth, profitability and customer satisfaction. The company’s groundbreaking use of Big Data and mathematical algorithms to predict consumer behavior has transformed entire industries. FICO provides analytics software and tools used across multiple industries to manage risk, fight fraud, build more profitable customer relationships, optimize operations and meet strict government regulations. Many of our products reach industry-wide adoption. These include the FICO® Score, the standard measure of consumer credit risk in the United States. FICO solutions leverage open-source standards and cloud computing to maximize flexibility, speed deployment and reduce costs. The company also helps millions of people manage their personal credit health. FICO: Make every decision count™. Learn more at www.fico.com.
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