CashEdge says fraud prevention services saved clients $130m in 2008

Source: CashEdge

CashEdge, the leader in Intelligent Money Movement products for financial institutions, announced today that the Company successfully stopped more than $130 million in client fraud losses through its comprehensive risk management services in 2008.

The fraud losses stopped reflect the dollar value of potentially fraudulent transactions detected and prevented by CashEdge's risk monitoring services.

CashEdge's risk management services leverage proprietary technology and the insights gathered from managing risk for the world's largest financial institutions, to help its financial institution clients mitigate risk and decrease fraud exposure. These services prevent fraudulent transactions from being initiated, prevent repeated fraud from disguised transactions and help in retrieval of funds after a fraudulent transaction has been executed. CashEdge uses statistical modeling to highlight patterns, practices, irregular transactions, other discrepancies and specific activities that suggest the existence of identity theft or unauthorized transactions.

CashEdge risk management services have been proven to be 95 percent effective in preventing potential fraud encountered by CashEdge's financial institution clients through the use of its transfer products.

According to Gartner, an estimated 71 million people in the U.S. currently use online banking and this number continues to grow. As adoption of online banking, including online account opening and funding and online funds transfers, continues to rise, so, too, does the associated fraud risk, especially in the light of data breaches, which increased 47 percent in 2008 as reported by Identity Theft Resource Center. This translates into increased pressure on financial institutions to act and to improve risk management in the online channel.

CashEdge's approach to risk monitoring, identification, detection, fraud prevention and mitigation combines human intelligence with automation that focuses on critical points in the life cycle of a customer, account and transaction, individually and collectively. Through this process, CashEdge helps institutions mitigate risk, increase fraud recovery and decrease fraud exposure, providing the most sophisticated risk management technology tools in the industry.

"Fraud is constantly evolving and growing more complex and sophisticated everyday - so it is imperative that financial institutions continually monitor, evaluate and rapidly adapt their risk management process to address emerging trends," said Amir Sunderji, Senior Vice President and Chief Risk & Payments Officer at CashEdge. "CashEdge has developed sophisticated risk management technology tools that combine human intelligence and behavioral risk models across population segments to proactively monitor, identify and mitigate fraudulent transactions - often stopping them before they ever hit the network."

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