HSBC Implements Fair Isaac's Fraud Predictor Solution to Enhance Fraud Detection and Cut Losses

Fair Isaac Corporation, the leading provider of analytics and decision technology, today announced that London-based HSBC Holdings plc (HSBC), one of the world’s largest banking and financial organizations, has implemented Fair Isaac’s Fraud Predictor with Merchant Profiles. The next-generation fraud detection solution will provide HSBC with advanced capabilities for cutting fraud losses and protecting credit and debit cardholders from fraudulent transactions.

Fraud Predictor is built upon Fair Isaac’s Falcon™ Fraud Manager, the fraud detection solution used to protect more than 450 million active payment card accounts worldwide. It is the only solution available that leverages data from both merchants and cardholders to provide more precise fraud predictions. By integrating the predictive power of merchant data with the proven analytics of Falcon Fraud Manager, HSBC can achieve an incremental boost in fraud detection and prevention over the performance of the traditional Falcon score alone.

“Fair Isaac’s Fraud Predictor is the ideal solution to take HSBC’s strategic use of fraud detection technology to the next level,” said George Lennox at HSBC. “The power of Fair Isaac’s transaction-based fraud solutions is market-proven worldwide. Adding Fraud Predictor to our services reflects our ongoing commitment to tapping into innovative technology solutions that help us limit fraud losses across our global network and provide our cardholders with the real-time protection they need in their payment card transactions.”

“Card issuers worldwide have confidence in the ability of Fair Isaac’s unique fraud-fighting analytics because they have experienced the results and benefits firsthand,” said Sonja Schindeler, vice president of Global Fraud Solutions at Fair Isaac. “HSBC’s implementation of Fraud Predictor significantly expands the reach of our innovative fraud analytics into new markets. As the first bank in Europe to invest in Fraud Predictor, HSBC will gain significant financial and customer service advantages from this implementation by promoting smart, profitable customer decisions across its diverse global portfolio.”

Merchant profiles synthesize transaction information and fraud history for millions of merchants. When an authorization request is received, the Fraud Predictor model calculates a fraud score based on the transaction data at the cardholder level as well as the transaction and fraud history at the merchant level, resulting in a broader view of a transaction and a significant lift in fraud detection. Merchant profiles will be updated and provided to HSBC on a weekly basis. The system’s neural network model continually uses this refreshed data to generate a highly accurate fraud score. Combined with the real-time processing and workflow management infrastructure of Falcon Fraud Manager, Fraud Predictor represents the most advanced neural network used in fraud detection today.