Actimize buys card fraud technology; signs MasterCard

Source: Actimize

Actimize, a leading provider of transactional risk management software for the financial services industry and a NICE Systems (NASDAQ:NICE) company, today announced that it has enhanced its debit fraud solution by acquiring proven ATM and debit card fraud detection models and analytics technology developed by industry analytics experts over the past four years and used and tested by a number of issuers and processors worldwide.

The analytics technology is proven to fight ATM and debit fraud effectively across multiple card brands and geographies. An independent issuer evaluation showed that these models detected 40% more fraud transactions when compared to one leading legacy card fraud solution.

Actimize now also owns the rights to one of the industry's fastest growing card data consortiums, with billions of ATM / Debit transactions collected from thousands of institutions worldwide. The consortium data will be used to enhance Actimize's existing fraud detection models and allow them to gain unique capabilities such as identification of compromised merchants, terminals and cards as well as early worldwide ATM fraud trends. These capabilities are especially useful in detecting and managing the risk behind "mass compromises".

By combining Actimize's existing enterprise fraud platform, used by some of the largest banks in the world, with the additional insights gained from the predictive consortium models, Actimize will now be able to provide unparalleled ATM and Debit fraud protection to its customers as part of a true cross-channel, cross-silo, enterprise solution. Additionally, these models will leverage the Actimize Risk Case Manager, and will work in tandem with other Actimize software capabilities, including the Actimize investigation tools, integration adapters and real-time execution engine.

"Our clients told us that they were unable to find consortium-backed, proven ATM/Debit analytics on a strategic enterprise case management platform with strong real-time capabilities," says David Sosna, CEO of Actimize. "We are responding to the needs of the market with the strategic acquisition of consortium fraud detection models. The analysis we will glean from this capability will enable us to offer our clients mission-critical fraud solutions, building on Actimize's already strong enterprise approach."

According to 2007 TowerGroup and American Bankers AssociAssociation market data, debit card usage and fraud have experienced double-digit growth rates over the last four years. In addition, financial institutions are faced with increasingly sophisticated attacks involving POS replacements, PIN encryption and other mass compromise events, cross-border attacks and even employee collusion. With this announcement, Actimize is the only solution in the market that offers consortium-based analytics that can fight these new fraud threats as part of a proven cross-channel enterprise fraud solution.

The consortium data-based analytical models will be rolled out to Actimize ATM/Debit Fraud customers as part of Actimize's next major product release and are expected to be available on the existing Actimize platform in the first months of 2009.

Separately, Actimize, a leading provider of transactional risk management software for the financial services industry and a NICE Systems (NASDAQ:NICE) company, today announced that MasterCard is using the Actimize technology to augment its ATM and Debit fraud detection capabilities for issuers.

Actimize recently enhanced its debit fraud solution by acquiring proven analytic models used today by MasterCard in its Fraud Monitor service, a real-time risk scoring and fraud prevention service for PIN-based transactions offered by MasterCard to its customers. The technology is proven to fight ATM and debit fraud effectively across multiple card brands and geographies and used and tested by clients such as MasterCard and other card issuers.

The Actimize fraud detection analytics are unique in that their multi-dimensional profiles can be created and updated in real-time to detect suspicious activities at the card, device, account level and many other dimensions.

"MasterCard, the industry's security innovator and a global debit card leader, values our new relationship with Actimize in delivering value-added real-time risk scoring and fraud prevention solutions to our customers," says Bruce Rutherford, Group Head, MasterCard. "We have already received affirmation of the value of this solution from our customers who use this technology and we are looking forward to further evolving the technology and models."

Amir Orad, EVP and CMO of Actimize, said, "Our strategy is to offer a unique combination of the best ATM and debit fraud analytical solution with a proven scalable enterprise fraud platform. The fact that our technology has been selected by MasterCard and offered to their members worldwide means a lot to us and our customers."

As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 18 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants.

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