As criminals find new ways to commit card fraud, partnering with a market leader in fraud mitigation is crucial.
The payment card industry’s ever-evolving landscape has seen a drastic increase in card fraud within the past few years. Card fraud costs the U.S. card industry $8.6 billion per year, according to an Aite Group study released in January 2010*. As worldwide electronic information sharing, electronic data storage, online purchasing and the frequency and ease of card usage increases, the odds of financial institutions and their cardholders becoming victims of card fraud also increase.
In 2009, FIS safeguarded more than 47 million cardholders from fraud, protecting a balance of just over $1 billion. This was achieved using 21st century technology, an in-house team of fraud analysts, decision scientists and statisticians, and a suite of products and services optimized to protect you and your customers. FIS provides the following key components to help diminish your risk of exposure:
Fraud Alert Management
FIS’ Fraud Alert Management is built on a state-of-the-art neural network engine that uses advanced analytic techniques drawn from billions of payment card transactions. Using cardholder and transaction data as inputs, the neural network system calculates a score for each transaction. The higher the score, the greater the likelihood that the account associated with the transaction has been used fraudulently. Score-based mitigation strategies can then be supplemented by analytically derived, rule-based strategies to target flash fraud trends and reduce the overall impact to legitimate cardholder spending.
FIS’ Fraud Alert Management employs an in-house team of fraud analysts, decision scientists and statisticians that focus on optimizing our fraud strategies. The team is dedicated to combating those fraud schemes being used by criminals today, while actively working to develop sophisticated prevention and detection methodologies to thwart future trends and potential abuses. FIS’ Fraud Analytics coordinates closely with the FIS Fraud Alert Management team to gain immediate visibility to new and emerging fraud schemes. This allows for faster trend analysis and the ability to implement new strategies in the early stages of a possible flash fraud event. Additionally, predicative analysis is routinely performed, which assists in fine-tuning rule strategies to minimize the impact on good transactions, while maximizing the number of fraudulent transactions detected.
FIS Secured – Debit and Credit
FIS Secured™ is a fraud protection program that leverages proprietary analytical tools to help prevent fraud. The program also provides limited warranty coverage for financial institutions against unrecoverable fraud losses, such as counterfeit, lost, or stolen debit and credit cards.**
- Neural network fraud detection and prevention combined with advanced fraud analytics
- Warranty reimbursement of unrecoverable fraud losses over $50**
- Fraud investigation and cardholder validation
- Fraud recovery, including chargeback processing
Benefits to Your Financial Institution
- Ability to stop fraud runs faster or even before they begin
- Gross fraud reductions as high as 71 percent***
- Ability to effectively budget fraud losses
- Savings realized through the reallocation of internal resources
- Decreased reputation risk
- Closer customer relationships
COMPROMISE MANAGER™ is a secure, browser-based tool designed to help financial institutions effectively manage compromised credit and debit card accounts. This utility helps you evaluate cardholder risk, conduct targeted fraud monitoring, selectively block accounts and, where available, reissue plastics.
- Central repository of compromised events
- Accessibility via a browser interface
- Simplified administration of compromise events
- Easy review of relevant cardholder data
- Ability to make decisions on blocks and reissues
- Ease of use in the back office through the convenient upload and download of information
- Automated fraud monitoring through Fraud Alert Management (Falcon)
Benefits to Your Financial Institution
- Reduces administrative costs of managing compromised accounts
- Automates the receipt and management of VISA® and MasterCard® events/alerts
- Minimizes the expense associated with individual cardholder research and decisions
- Eliminates the need to automatically reissue all cards identified as potentially compromised
- Provides superior customer service through the use of delayed block functionality
- Helps to reduce counterfeit losses through timely card blocking
FIS Chargeback Services provides end-to-end fraud and dispute recovery management services for our client partners. We gather and track documentation to validate fraudulent activity, process compliance chargebacks and prepare case closeout packages for the financial institution. These functions combine to help reduce chargeback liability and potential losses from fraudulent activity.
- FIS, as an extension of your operation, handles all aspects of the case, such as contacting cardholders, managing and tracking case status, obtaining documentation and reporting to VISA
- Chargeback Web portal for seamless customer service and case tracking
- Descriptive case closure documentation
- Integrated case creation from FIS Fraud Alert Management System
- Full-service and self-administered service options
Benefits to Your Financial Institution
- There is less need for internal financial institution expertise related to complicated chargeback rules and guidelines
- FIS assumes responsibility for processing chargebacks within industry-mandated time frames
- FIS’ expert staff explores multiple avenues of recovery to help maximize your portfolio’s profitability
FIS DataNavigator® is a comprehensive solution that collects and connects transactional data across the enterprise, allowing banks to harness the power of information that resides in every transaction – giving fresh insights into customers’ behaviors and their activities. Whether it’s helping to improve customer service levels, track fraud patterns or simplify cash management at ATMs, FIS DataNavigator can provide the basis for faster responsiveness, better decision-making and improved operations.
FIS DataNavigator provides transaction research, exception management, device management, settlement and reporting from one central database and a single point of user access. It operates as a stand-alone platform for real-time EFT data management, 24 hours a day, seven days a week, making data available seconds after the transaction is complete and with no impact on switching performance.
- Transaction Research
With the ability to perform searches based on a number of parameters, including date, device ID, institution or primary account number, FIS DataNavigator returns complete information to customer service advisors in one easy step while the customer is still on the phone.
- Exception Management
Every day, a percentage of transactions become exception items, which are expensive and time-consuming to process. FIS DataNavigator simplifies the exception management process for PIN and signature-based transactions utilizing a sophisticated rules engine to provide deep insight into the data that resides in each transaction. FIS DataNavigator supports the full life cycle of an exception item – from retrieval request, adjustments and chargebacks to re-presentments, rejects, arbitrations, fraud notifications and miscellaneous fees.
- Continuous Financial Settlement Services
This feature provides the management tools needed to monitor business activity continuously throughout the day. FIS DataNavigator supports any processor’s settlement needs around the clock, regardless of the front-end switching platform.
Device Management Services
Managing ATMs gets tougher every day. Instant access to device information is paramount when troubleshooting problems. FIS DataNavigator allows easy monitoring of device history and status, cash balances, and envelope deposits, as well as ATM balancing.
FIS Fraud Navigator
For financial institutions, merchants, processors and networks, controlling payment card fraud is one of the single biggest challenges – and opportunities – in the industry. To combat the proliferation of card fraud, FIS Fraud Navigator™ offers a robust fraud management solution that enables issuers and acquirers to detect fraud as early as possible to avoid potential loss.
FIS Fraud Navigator analyzes payment transactions that occur at the issuer, acquirer or transaction switch in real time as part of the inline authorization path, or post-authorization for subsequent follow-up. FIS Fraud Navigator combines flexible rules creation and management, system-generated alerts and a wide range of off-the-shelf reports in an economical, easy-to-use system.
FIS Fraud Prevention Services is on guard for our clients 24 hours a day, 365 days a year. If the neural network identifies suspicious activity indicative of potential fraud, the cardholder is contacted to verify the transaction. If the cardholder can’t be reached, a member of the FIS team evaluates the transaction and the cardholder history to determine appropriate action. For example, a temporary hold can be placed on the card to protect the cardholder until he can be reached, or the issuer can simply be notified for internal action consideration.
*Aite Group. “Card Fraud in the United States: The Case for Encryption.” 2010. Print.
**Certain limitations and exclusions apply. Only cards issued by a financial institution and transactions processed by FIS are eligible. The annual limit on warranty reimbursements ranges from $15,000 to $400,000 based on the number of accounts for which FIS provides Secure Services. Daily limits of $3,500 for credit card purchases, $1,000 for credit card and debit card advances, $510 for debit card ATM transactions and $1,500 for debit card purchases apply. FIS reserves the right to increase or decrease these amounts. Contact FIS for a full copy of the FIS Secured fraud loss warranty.
***Results will vary. 71 percent reduction is based upon one customer’s experience.
**** Identity Theft Expense Reimbursement Insurance. FIS provides Identity Theft Expense Reimbursement Insurance pursuant to a policy (the "Policy") issued to FIS by AIG Specialty Insurance Company. The Policy covers members receiving ID Protection Service as additional named insureds while their membership remains in good standing. Identity Theft Expense Reimbursement Insurance coverage is currently not available to ID Protection Service members located in the State of New York.