Enhanced device and digital consumer insights will reduce false positive rates for card-not-present fraud to increase revenues and customer satisfaction FICO has partnered with 41st Parameter, a part of Experian and a leader in securing online relationships, to fight fraud on card-not-present (CNP) transactions, the top source of payment card fraud today, while letting more genuine transactions proceed in real time.
FICO is integrating 41st Parameter’s TrustInsight with the FICO Falcon Platform, which protects 2.5 billion card accounts and is used by more than 9,000 financial institutions worldwide. Authenticating the device being used in a transaction provides yet another layer of detection to the Falcon Platform, which includes proprietary analytics based on more than 30 patents. 41st Parameter’s TrustInsight solution provides a real-time analysis of a transaction, crowd-sourced from a network of merchants, which produces a TrustScore indicating whether the transaction is likely to be genuine and should be approved.
TrustInsight helps reduce the number of “false positives,” or good transactions that are declined or investigated by the card issuer. The TrustScore, integrated with the FICO Falcon Fraud Manager Platform, provides a link between data the merchant knows and data the issuer knows to enable issuers to utilize additional information that is not currently available in their fraud detection process, including the identification of a cardholder’s “trusted devices.” For instance, if a cardholder is on vacation and tries to purchase a flight online, Falcon Fraud Manager’s advanced analytics might rate this as a suspicious transaction if the location and the value were unusual for the cardholder. TrustInsight could identify that in fact the cardholder was using their own mobile phone for the transaction, which makes the transaction far likelier to be genuine.
About 41st Parameter 41st Parameter, a part of Experian, is the global leader in device recognition and intelligence uses patented technologies and years of expertise to identify devices without cookies, without compromising privacy and without impacting performance. FraudNet combines device intelligence with risk analysis to detect and prevent online fraud before it happens. AdTruth, the digital media division, gives marketers a better way to recognize and reach their most valuable audiences across all types of devices. The TrustInsightNetwork enables online merchants to increase sales by approving more trusted transactions. These privacy compliant solutions help keep the Internet more secure and relevant for everyone.