FICO Falcon Fraud Manager has been chosen to protect customers of China's Bank of Communications (BOCOM) from payment card fraud.
The solution from FICO- provider of analytics and decision management technology- leverages neural network models, patented cardholder profiles and business rules to detect fraud.
One of four oldest banks in China, BOCOM selected FICO's solution after a competitive review and its performance at other global organisations.
FICO claims that its fraud solution protects more than 2.5 billion active card accounts, which includes more than 50 million in the Asia Pacific region.
"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, BOCOM.
Combating new types of fraud
The burgeoning consumer banking industry in China is attracting frauds and this has led to an increase in demand for solutions such as FICO Falcon Fraud Manager that can combat new types of fraud.
BOCOM was using a third-party and in-house systems to manage and track fraud before implementing FICO Falcon Fraud Manager.
However, the financial institution was not satisfied with the solution as it did not have real-time detection capabilities and failed to identify new types of fraud.
It then decided to deploy solution from FICO that saved Asia Pacific card issuers more than US$1.7 billion over the last 20 years.
BOCOM is already using applications from FICO including FICO TRIAD Customer Manager, FICO Model Builder and FICO Capstone Decision Accelerator.
"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," added Dr. Xuanqing.
Sign up for CIO Asia eNewsletters.