Date: Jan 31, 2013
Categories: Risk and Regulation
, Technology & Operations
Singapore, January 29th 2013 - FICO, the leading provider of analytics and decision management technology, today announced that China’s Bank of Communications (BOCOM) has selected FICO® Falcon® Fraud Manager to protect the bank and its customers from payment card fraud. BOCOM, one of four oldest banks in China, will be the first Chinese bank to implement FICO’s industry-leading fraud solution, which is used by more than 9,000 financial services organizations worldwide to protect more than 2.5 billion active card accounts, including more than 50 million in the Asia-Pacific region.
China’s Bank of Communications, with HSBC, established the China Bank of Communications Pacific Credit Card Center in 2004. Like most Chinese banks, the bank was using a combination of third-party and in-house systems to manage and track fraud, but its systems lacked real-time detection capabilities and could not recognize new types of fraud. After a competitive review, BOCOM chose FICO’s solution on the strength of its global track record.
“Our goal is to protect our customers ‘card security while ensuring that they have a good experience at the point of transaction,” said Dr. Liu Xuanqing, director of the risk department, Pacific Credit Card Center. “With FICO’s solution, we are confident we can considerably reduce losses in transaction fraud and also generate fewer false positives, resulting in a more protected environment for our customers.”
This marks the second time BOCOM has been first-to-market with a FICO application, as the bank previously has implemented FICO® TRIAD® Customer Manager, FICO® Model Builder, FICO® Capstone® Decision Accelerator, in addition to other FICO decision management applications.
“China’s consumer banking industry has experienced explosive growth, but with that growth comes criminals seeking to perpetrate fraud,” said John Chen, managing director for FICO in China. “By selecting FICO Falcon Fraud Manager, BOCOM has raised the standard for performance for the entire industry, with real-time detection of both known fraud schemes and those that are likely to emerge in the future.”
FICO® Falcon® Fraud Manager has been proven to reduce fraud losses as much as 50%, saving US card issuers more than $10 billion over the last 20 years, and Asia-Pacific issuers more than $1.7 billion. The solution uses neural network models, patented cardholder profiles and business rules to detect fraud.
Re-disseminated by The Asian Banker