Product Overview: FICO Falcon Fraud Manager
Introduction
FICO Falcon Fraud Manager is the industry standard and leading solution for detecting and preventing transaction fraud in real-time. It is designed to protect financial institutions from various types of fraud across multiple channels and products, utilizing advanced predictive analytics and machine-learning techniques.
Key Features and Functionality
Advanced Analytic Techniques
FICO Falcon Fraud Manager employs sophisticated analytic techniques, including patented cardholder profiling, neural network models, and consortium models. These models synthesize intelligence from billions of payment card transactions and hundreds of person-years of experience to identify fraud with high reliability.
Real-Time Fraud Detection
The system integrates directly with authorization and payment systems, enabling real-time scoring and the immediate detection of fraudulent transactions. This allows financial institutions to block risky transactions at the point of sale, significantly reducing fraud losses.
Adaptive Analytics
Falcon Fraud Manager version 6 introduces adaptive analytics, which augment the base analytics with models that learn in real-time from case dispositions. This feature improves fraud detection by up to 5% and allows institutions to respond quickly to new threats as they arise.
Global Profiles and Risk Identification
The system includes global profiles that focus on high-risk entities such as ATMs, merchants, and geographic regions. This capability improves detection by up to 44% and ensures extra scrutiny in areas of greatest risk.
Multi-Channel Detection
Falcon Fraud Manager can detect multiple types of fraud across various channels and bank products from a single platform. It consolidates multi-channel fraud cases and account activity at the customer level, providing a comprehensive view of fraud operations.
Case Management and Rules Management
The system features a web-based, user-friendly case management environment for analysts to investigate referred accounts efficiently. It also includes improved rules management, leveraging FICO’s Blaze Advisor business rules management system, which allows for the easy definition, testing, and deployment of rules based on the organization’s strategies.
Transaction-Based Scoring
Falcon Fraud Manager analyzes each authorization transaction to assess the risk of fraudulent activity, providing an accurate fraud score that indicates the likelihood of the account being fraudulent. This scoring system helps in making informed decisions quickly.
Industry-Specific Models
The solution offers industry-specific models for credit, debit, retail, and oil cards, which fine-tune the fraud management solution to detect fraud characteristics specific to the portfolio, thereby improving accuracy.
Security and Compliance
FICO Falcon Fraud Manager ensures robust security with features like LDAP over SSL/TLS for user authentication and authorization. It is also compliant with regulatory standards such as PCI.
Reporting and Deployment
The system includes embedded ad hoc and canned reports powered by Business Objects, allowing financial institutions to report on fraud operations, rule performance, and false positives. Deployment options include installation on various operating systems such as IBM zOS, AIX, and Linux, with a typical deployment period of 6-12 months.
Benefits
- Enhanced Fraud Detection: Detects up to 50% more fraud than rules-based systems, with lower false positives to minimize impact on good customers.
- Real-Time Response: Provides the earliest possible warning of fraud activity, enabling immediate action to reduce losses.
- Improved Analyst Productivity: Boosts analyst productivity and effectiveness of fraud operations through efficient investigations and comprehensive case management.
- Adaptive to Changing Threats: Adjusts to new fraud patterns and dispositions in real-time, ensuring continuous improvement in fraud detection.
In summary, FICO Falcon Fraud Manager is a comprehensive and highly effective solution for financial institutions to combat transaction fraud, offering advanced analytics, real-time detection, and robust case and rules management capabilities.