FICO Champions New Approach to Enterprise Fraud Management

Minneapolis—August 23, 2012—FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today released a white paper outlining a new paradigm for enterprise fraud management. This new approach provides greater agility and flexibility to banks seeking to guarantee every customer stronger protection across all product lines, channels, and lifecycle stages.

In What Is the Future of Banking Fraud Management?, FICO asserts that the banking industry is moving away from the pursuit of a single monolithic system that displaces existing fraud initiatives, and often times eliminates the value provided by existing, best-in-class point solutions. In its place, many banks are now looking to use a combination of existing and new analytics-based systems to protect each channel, and link those systems as needed to provide centralized insight and control, as well as greater continuity in customer experience. This new approach puts the emphasis on strengthening the weakest links in a bank’s fraud protection while building toward enterprise protection in a structured, incremental way.

"Banks now see fraud protection as a customer service imperative, so the need to offer customers coordinated, bank-wide protection has grown," said Doug Clare, FICO's Fraud Chief. "However, over the past decade, the old approach to enterprise fraud management has frustrated many banks. In today's reality, it just doesn't make sense to throw away effective fraud protection systems and start from scratch."

Enterprise fraud management is an urgent initiative for banks worldwide. As reported in the 2012 CEB TowerGroup report Adoption and Investment in Financial Services Technologies: Enterprise Fraud Management, 32 % of banks in a recent study said they intend to adopt or replace their enterprise fraud management systems by 2016.

"Enterprise fraud solutions are often hindered by a lack of context," said CEB TowerGroup research director Jason Malo. "Solutions must be flexible enough to satisfy specific monitoring, case management, and reporting requirements for every line of business. A monolithic approach that is unable to adapt to the context of fraud both hinders adoption and undermines anti-fraud efforts."

"Every bank will achieve enterprise fraud management differently," said Clare. "There is no one-size-fits-all solution. That said, the most successful fraud solutions will include a combination of predictive analytics to identify changing fraud patterns, business rules to stop known fraud types, link analysis to see broader patterns indicating fraud rings, and case management to shut down fraud with a minimum of customer interruption."

FICO offers a structured but incremental approach to enterprise fraud management, one with agility to address bank priorities while leveraging value in installed systems. As part of its enterprise fraud management strategy, FICO plans to launch a series of solutions and new partnerships that will extend the company’s leadership in fraud protection. FICO already offers a suite of banking fraud management solutions, including FICO^® Falcon^® Fraud Manager for card fraud, debit fraud and e-payments — which protects more than 2,5 billion active payment card accounts for more than 9.000 financial services organizations worldwide — the FICO^® Fraud Alert Network for ATM fraud, and the FICO^® Merchant Monitoring Solution for fraud experienced by merchant acquirers. FICO’s fraud advisory services team works with leading lenders to help them develop world-class capabilities for preventing internal fraud, application fraud, first-party fraud, third-party fraud and acquiring fraud.

FICO’s new white paper is available at www.fico.com/insights. More information on FICO’s enterprise fraud approach is at www.fico.com/enterprisefraud.

Sobre FICO
FICO (NYSE:FICO), formerly known as Fair Isaac, delivers superior predictive analytics solutions that drive smarter decisions. The company's groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO's innovative solutions include the industry-leading solutions for measuring credit risk, managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world's top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands.

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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 plan, 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 September 30, 2011 and its last quarterly report on Form 10-Q for the period ended June 30, 2012. 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.

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