Transcript Title of Presentation - FICO™ | FICO Decisions

The EMV Shift Is Here
Introducing a Frictionless Defense Against CNP Fraud
Mr. James Packer, Esq.
Chief Operating Office and General Counsel
SecureBuy LLC
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Agenda
► Increase
of E-commerce/CNP Fraud
► Current Answer
to E-commerce/CNP Fraud
► Frictionless Analytic
Authentication—
The New Solution
► Frictionless—Differentiators
► Client
Endorsements
► Questions
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© 2014 Fair Isaac Corporation. Confidential.
and Advantages
Increase of E-commerce/CNP Fraud
► Shift
of EMV CP to CNP fraud
► Increase
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in e-commerce/CNP transactional volume
© 2014 Fair Isaac Corporation. Confidential.
Increase of E-commerce/CNP Fraud
Shift of fraud from CP to CNP fraud due to EMV
► EMV
shift will lessen CP fraud, but CNP fraud will increase
► CNP fraud in the US is expected to be almost 4 times > than POS card fraud in 2018
► Europe and Canada experienced a 40–60% increase in online fraud when EMV was
implemented
Increase in e-commerce/CNP transactional volume
► Continued
globalization of e-commerce
► Ever increasing commerce “on the web”
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© 2014 Fair Isaac Corporation. Confidential.
Current Answer to E-commerce/CNP Fraud
► Rules
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Based Analytics
© 2014 Fair Isaac Corporation. Confidential.
Current Answer to E-commerce/CNP fraud
Rules Based Analytics—not enough!
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►
Antiquated, not predictive
►
Driven by rules based analytics
►
Manually intensive customer behavioral profiling
►
Physical attributes
© 2014 Fair Isaac Corporation. Confidential.
Frictionless Analytic Authentication—
The New Solution
► Defining
Frictionless
► Profiling
► Self-Learning
Outlier Detection Model
► Streaming Analytics
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© 2014 Fair Isaac Corporation. Confidential.
Frictionless Analytic Authentication
Card-Not-Present Fraud Management
Decision Engine
Rules
FICO Scoring Module
Streaming
CNP
Transactions
Profiles
Model
Score 1—999
Device Reputation
and / or
Other Data
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© 2014 Fair Isaac Corporation. Confidential.
Transaction
Decision
Reason Codes
Detection
Rules
Decision
Criteria
New Technologies Improve Customer Experience
► Profiling
► Identifies
behaviors and patterns for each entity
► Complete picture of fraud by looking across multiple
entities such as merchants, devices or countries
► Better identify fraud via predictive variables and account
information
► Self-Learning
Outlier Detection Model
► Patented
analytic technology provides the most
accurate predictive models available
► Streaming Analytics
► Incorporates
data real time from millions of transactions
► FICO Big Data—leverages FICO® Falcon® technology,
proven for over 20+ years
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© 2014 Fair Isaac Corporation. Confidential.
Frictionless—Differentiators and
Advantages
► Differentiators
and Advantages
► Attribute/Benefit
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© 2014 Fair Isaac Corporation. Confidential.
Frictionless—Differentiators and Advantages
► Transaction-Based
Scoring—Analyzes each transaction to
assess risk of fraudulent activity. Provides an accurate fraud
score, indicating the likelihood that the transaction is
fraudulent
► Self-Learning
Outlier Detection—Uses advance analytics
to sharpen detection by creating a more precise separation
between frauds and non-frauds. Provides a performance lift
in real-time value detection
► Real-Time
Decisioning—Provides users with a
100% real-time solution
► Entity
Profiles—Improves detection of entities showing
potentially high risk behaviors
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© 2014 Fair Isaac Corporation. Confidential.
Frictionless—Differentiators and Advantages (Cont’d.)
Attribute
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Benefit
Robust self-learning outlier detection with
entity profiling and monitoring
Detects more fraud with lower false positives
to provide minimal impact on customers
Seamless integration with the authorization
system for real-time scoring
Identifies fraud sooner to give you more
opportunity to reduce losses
Operates in real time with throughputs in
milliseconds
Streaming analytics improves the speed and
precision of fraud detection
Includes patented profiling technology that
“learns” entity behavior patterns
Most accurate and comprehensive solution
for detecting CNP fraud and reducing losses
Self-learning analytics have been shown to
deliver a lift in detection
Minimizes consumer impact and merchant
operational costs
© 2014 Fair Isaac Corporation. Confidential.
Client Endorsements
► Gateway
► Mobile
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Wallet
© 2014 Fair Isaac Corporation. Confidential.
Client Endorsements
“As a Gateway, SecureBuy’s Phoenix Fraud Manager, Powered with FICO™,
is a solution that actually provides us with real value by properly protecting
each transaction.”
Mike Ackerman
President/CEO, DigiPay Integrated Technology Solutions
“SecureBuy’s Phoenix Fraud Manager, Powered with FICO™, solution
protects merchants and consumers alike, and it’s easy to implement.”
Magid Mina
CEO, InvisiCorp, Inc.
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© 2014 Fair Isaac Corporation. Confidential.
Questions
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© 2014 Fair Isaac Corporation. Confidential.
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Thank You!
Mr. James Packer, Esq.
[email protected]
www.securebuycommerce.com
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Please rate the session online!
Mr. James Packer, Esq.
[email protected]
www.securebuycommerce.com
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© 2014 Fair Isaac Corporation. Confidential.