Fair Isaac Corporation, a provider of analytics and decision technology, announced the availability of a complete suite of identity theft solutions that help financial services institutions and telecommunications providers effectively stem application fraud and account takeovers before major losses occur.
Identity theft is a growing problem that costs credit grantors billions of dollars in losses annually. A recent study by the Federal Trade Commission estimates that in the past year, approximately 10 million consumers were victims of identity theft, costing businesses and consumers $47 billion in losses. Integrating Fair Isaac's Application Fraud Models into the loan origination process and the company's new Falcon Fraud Manager identity fraud solution into the transaction authorization process can significantly reduce fraud losses and strengthen the bottom line.
"Identity fraud is on pace to become a huge problem for the U.S. financial services industry," says Dennis Behrman, research analyst in the Retail Customer Strategies Group at Financial Insights, an IDC company. "With identity theft, institutions not only absorb the direct fraud loss, but it also costs them at points throughout the customer lifecycle in terms of wasted collections costs and loan loss provisioning. Fair Isaac is one of just a few providers in the position to help institutions solve this problem."
Fair Isaac's Application Fraud Models are configured specifically for a business based on its internal data as well as various external data sources that are effective in predicting the likelihood of identity fraud. In addition, Fair Isaac's cross-industry consortium data, representing industry- wide application fraud data, can be used to augment the model.
Credit grantors can integrate the Application Fraud Models with their existing origination solution, such as Fair Isaac's Capstone Decision Manager and LiquidCredit service, to quickly and accurately quantify the identity fraud risk posed during the application process and decrease acquisition costs and fraud-related losses. A large retail card issuer recently implemented a Fair Isaac Application Fraud Model via Capstone to detect and stop application fraud in real time at the point of sale.
Fair Isaac's Falcon Fraud Manager is the industry-standard solution in payment card fraud detection, protecting 65 percent of the world's credit cards. Its neural network models reliably identify various types of fraud. The company offers a new extension of the Falcon suite to detect identity theft- related fraudulent transactions. Financial institutions can use this new capability to apply investigative techniques unique to identity theft fraud cases, thus effectively preventing losses from accounts opened fraudulently and account takeover fraud.
LiquidCredit service for Telecom is Fair Isaac's solution that combines proven decisioning technology and custom interfaces to help telecommunication carriers consistently execute their credit and fraud policies by determining the risk of each application and providing the right decision in real time. The service validates the data, utilizing information from third-party data providers, evaluates the application according to the pre-defined decisioning criteria, and returns an accept/decline decision in real time.
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