UK banking group HSBC has implemented US-based Fair Isaac's Fraud Predictor technology in a bid to cut card fraud levels.
Fair Isaac says its Fraud Predictor with Merchant Profiles product will synthesise transaction information and fraud history for millions of merchants. When an authorisation request is received, the system will calculate a fraud score based on the transaction data at the cardholder level as well as the transaction and fraud history at the merchant level. Merchant profiles will be updated and provided to HSBC on a weekly basis.
The system is based on the vendor's Falcon Fraud Manager product, a neural network-based predictive software system that examines transaction, cardholder and merchant data to detect and mitigate fraud.
George Lennox at HSBC, says: "Adding Fraud Predictor to our services reflects our ongoing commitment to tapping into innovative technology solutions that help us limit fraud losses across our global network and provide our cardholders with the real-time protection they need in their payment card transactions."
Fair Isaac says HSBC is the first bank in Europe to implement Fraud Predictor.