HSBC first client for Fair Isaac fraud referral system
09 July 2003 | 4507 views | 0
HSBC Bank has signed as the first client to implement Fair Isaac's new 'Strategy Science' fraud referral system, designed to increase the number of approved credit card transactions while keeping losses under control.
The solution was introduced at the vendor's InterACT 2003 client conference in San Diego last month. The package has been developed in a bid to stem the number of false-postives, or transactions incorrectly flagged for investigation, using traditional scoring techniques.
According to Fair Isaac research, 70% of payment card transactions referred for fraud are not completed, at a cost of $60 in lost value for every $1 of fraud captured. The vendor says the implementation of its new methodology can reduce the amount of non-fraudulent transactions impacted to under $25 for every fraud dollar captured while keeping the total amount of fraud loss in check.
Under the agreement with Fair Isaac, HSBC will take data from its existing Falcon installation to simulate the effects of different fraud referral strategies on losses at the point-of-sale.
George Lennox, manager, group credit, at HSBC, comments: "The solution will enable us to further increase profitability by helping us make much more precise referral decisions at the point of sale."
HSBC will also utilise Fair Isaac's Fraud Consulting Services to help implement the solution.