Source: Memento, Inc
Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision management technology, and Memento, Inc., a leader in fraud and compliance solutions for banks and credit unions, today announced a strategic partnership to help financial institutions fight internal fraud.
Under the agreement Fair Isaac will offer Memento Security, Memento's award-winning fraud management platform, to financial services companies worldwide.
Bringing Memento Security into Fair Isaac's fraud portfolio, which today includes protection for more than one and a half billion payment cards worldwide, provides Fair Isaac's clients a new breadth and scope of protection against the escalating problem of internal fraud.
"Increasingly, fraudulent activity is being found to originate inside the company, posing a dual threat to a financial services firm's balance sheet and its reputation," said Doug Clare, Vice President, Fraud Product Management, at Fair Isaac. "By joining forces with Memento, we're now able to offer unparalleled protection against this insidious problem."
Pressure is mounting on financial institutions to address this problem, in part because of looming Basel II deadlines and their focus on operational risk -- in other words, fraud.
"There is high risk of public embarrassment and disclosure cost due to data loss through security breaches," said Aaron McPherson, Practice Director, Payments and Security, Financial Insights, an IDC company. "Mitigating the risk requires centralized enforcement and audit, therefore financial institutions must utilize everything in their midst to prevent and detect all types of fraud, whether internal or external."
"Historically, financial institutions have had challenges trying to identify internal fraud proactively, in addition to conducting investigations after a whistleblower complaint, tip, or coincidental discovery," said BC Krishna, CEO of Memento, Inc. "In forging this partnership with Fair Isaac, we can help financial institutions monitor, detect, investigate and prevent internal fraud in ways that haven't been possible before now."
"We are witnessing a market convergence where cross-channel fraud is becoming increasingly common and approaches to internal fraud are becoming bolder and more sophisticated," said George Tubin, Research Director at TowerGroup. "As a result, banks and other financial institutions recognize they must make smarter decisions at the enterprise level in order to fight fraud effectively."