TJ Horan

As far as industry predictions go, perhaps surprisingly, one of mine actually came true: “2018 will be the beginning of the end for physical credit cards. However, their functionality will become even more omnipresent in our lives as more cards migrate to consumers’ mobile phones.” It’s true that more and more Americans are adopting mobile payments. In May Recode rep…

This holiday season should be a joyous one — for criminals. Holiday spending always makes it easier for fraudsters to steal your money, for two reasons. First, you may be so busy with shopping and parties that you don’t take that extra minute to scrutinize an email link that purports to come from a store or delivery service. People in a rush are also more susceptible…

For more than 25 years, the Falcon consortium has served as the world’s largest collection of payment card transaction details, consisting of the diverse fraud and non-fraud truncation assets that have spawned 80+ fraud-focused artificial intelligence and machine learning patents, with 30+ patents pending. It has provided a “force multiplier” effect that benefits cont…

This is the fifth in my series on five keys to using AI and machine learning in fraud detection. Fraudsters ensure that protecting customers’ accounts is very complex and dynamic, a challenge where machine learning thrives. For continual performance improvement, fraud detection professionals should consider adaptive technologies designed to sharpen responses, particu…

This is the fourth in my series on five keys to using AI and machine learning in fraud detection. Research shows that depth and breadth of data is more impactful to machine learning model performance than cleverness of the algorithm. It’s the computing equivalent of human experience. This suggests that, when possible, you can improve predictive accuracy by expan…

This is the third in my series on five keys to using AI and machine learning in fraud detection. As in many professional fields (medicine, law, construction, etc.), there are generalists and specialists. The same applies to the development of behavioral analytics; there are general modeling techniques and highly specialized techniques. For example, your communicati…

This is the second in my series on five keys to using AI and machine learning in fraud detection. Key 2 is behavioral analytics. Behavioral analytics use machine learning to understand and anticipate behaviors at a granular level across each aspect of a transaction. The information is tracked in profiles that represent the behaviors of each individual, merchant, acco…

Payment fraud is an ideal use case for machine learning and artificial intelligence (AI), and has a long track record of successful use. When consumers get a call, text, email or in-app messages from their card issuer asking them to validate a transaction, or informing them of fraud on their card, they may not even suspect that behind this bit of excellent customer se…

As a drumbeat of data breaches becomes the new reality — 42% of organizations breached in 2017 were breached in the past — it’s easy for consumers to throw up their hands and brace themselves for becoming a victim of identity theft or other financial crime. However, there’s an obvious step you can take to protect your personal information: Don’t give it away to fraud…

As FICO reported today, there was a 10% increase in the number of payment cards compromised at U.S. ATMs and merchants in 2017. The number of compromised card readers at U.S. ATMs, restaurants and merchants rose 8%. On the face of it, there’s nothing to celebrate in this ATM fraud data from our FICO^® Card Alert Service, which monitors hundreds of thousands of ATMs an…

Just as the Wild Card Round is followed by the Divisional Round in the NFL playoffs, fraud and payments predictions are always followed by New Year’s resolutions. This year, in the spirit of efficiency, I’m combining both predictions and resolutions by forecasting that in 2018, my wallet is going to go on a diet; it will definitely become slimmer as physical (plastic)…

There has been a lot of noise in the fraud marketplace from new market entrants touting the power of machine learning (ML), artificial intelligence (AI) and “new data sources” to fight fraud. Regarding ML and AI, FICO Chief Analytics Officer Scott Zoldi wrote in his post, “Artificial Intelligence: Find It Right in Your Own Backyard”: "The FICO^® Falcon Fraud Managemen…