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TJ is the primary strategic leader for FICO’s Fraud Management Solutions. He is responsible for developing and promoting the strategic direction for FICO’s fraud products and manages the P&L associated with several fraud product lines in multiple industries, across multiple global locations.
Definition:Payment methods that do notadhere to the issuer-network-acquirer model and those that do not utilize card association networks or, where the liability of payment is held by an issuer that is different than the FI holding the consumer’s “DDA”
• Accepting alternative payment solutions is the fastest way an e-commerce business can increase international sales
• Not everyone has a credit card (i.e., 7% in some EU countries)
• Bank debit payments make up the majority ofonline transactions
• Proliferation of mobile (OS and Apps)• Higher conversion rates on websites• The need/desire to not carry a wallet (or money)• Coupons and incentives give consumers a reason to switch
“Criminals and other bad actors are rapidly evolving their hacking techniques, and are attacking quickly, making timely fraud analytics more critical than ever.
Big data analytics give enterprises faster access to their own and relevant external information. The value of information needed to uncover fraud events deteriorates with time; in some cases, more than a second is too long.” Gartner UBA Report
Adaptive Models Can Significantly Improve False Positives
Adaptive models reduce 15%• Retains resilience of consortium models• Adapts for analyst usage and feedback in each deployment• Reduces the need for ongoing rule-writing• Strong weapon for fighting flash fraud
• A behavior may be considered “high-probability”, i.e. typical and low-risk, even if it has never been observed directly on this customer’s account before
• Reduces false positives• Handles details of complex interactions
& non-numerical inputs previously impractical for traditional profiles
Include the consumer as an additional layer of defense
Consumers both control
and receive customizable alerts about card activity
Falcon nowPurchase alert! $349 transactionat apple.comtap to view
FB
Thursday, July 179 51Falcon 5m agoPurchase exceeding $200 threshold on card ending in 9999. Swipe to view details or change Alert settingsslide to view
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FBFalcon now
Online purchase for $482.77 declined due to Falcon settings.Swipe to adjust Usage Controlsslide to view