HSBC Implements Fair Isaac’s Fraud Predictor Solution to Enhance Fraud Detection and Cut Losses
MINNEAPOLIS-October 31, 2005-Fair Isaac Corporation (NYSE:FIC), 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 FalconT 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.
About HSBC Holdings plc
HSBC Holdings plc is headquartered in the UK. The HSBC Group serves over 110 million customers worldwide from more than 9,700 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,467 billion at 30 June 2005, HSBC is one of the world’s largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world’s local bank.’
About Fair Isaac
Fair Isaac Corporation (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company’s predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power billions of mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myFICO.com Web site, consumers use the company’s FICOR scores, the standard measure of credit risk, to manage their financial health. For more information, visit www.fairisaac.com.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac, including statements regarding its Fraud Predictor with Merchant Profiles product offering and the benefits to be derived from this offering, are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation, use and functionality of the offering, the risks that customers will not perceive material benefits from the offering, failure of the product to deliver the expected results, the possibility of errors or defects in the offering, and other risks described from time to time in Fair Isaac’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2004, and quarterly report on Form 10-Q for the period ended June 30, 2005. Forward-looking statements should be considered with caution. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac’s results could differ materially from Fair Isaac’s expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.
Fair Isaac, Falcon and FICO are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be the trademarks of their respective owners.