FICO today launched the FICO Proximity Location Service, as part of the FICO Fraud Resolution Manager, to help credit and debit card issuers improve the safety of payment card transactions.
Developed in partnership with ValidSoft, a wholly owned subsidiary of Elephant Talk Communications Corp, the FICO Proximity Location Service is a proximity correlation service. When a credit or debit card is used at an ATM or point-of-sale terminal, the FICO Proximity Location Service compares that location with the physical location of the cardholders' registered mobile phone. The transaction will only be cleared if the two locations match or if the phone is in proximity to the card.
In trials of the service with UK card accounts, the ability to perform this proximity matching reduced the number of "false positives" (genuine transactions investigated because they appear to be fraudulent) on international transactions by as much as 70 percent.
Motivated by the success of the trial, several UK banks are now developing deployment plans for the FICO Proximity Location Service.
Sign up for CIO Asia eNewsletters.