NICE Actimize unveils fraud profiling solution for PSD2

The race is on for financial institutions in the European Union community to finalize their readiness for the Payment Services Directive (PSD2) compliance deadlines coming up this September.

To assist FIs of all size, NICE Actimize, a NICE business and the leader in Autonomous Financial Crime Management, has introduced a fraud profiling solution for PSD2 compliance and beyond, now also available as a SaaS solution, to address the unique requirements of PSD2 set by the European Union (EU).

Bolstered by NICE Actimize’s proven experience in real-time payments fraud detection, the purpose-built, secure cloud solution enables faster deployment and lower total cost of ownership, bringing sophisticated fraud analytics to all sizes of financial institutions.

The Actimize cloud-based offering provides industry leading, end-to-end fraud management capabilities with real-time transaction risk analysis (TRA), cross-channel fraud detection, and multi-payment coverage, as well as extensive fraud alert and case management functionality.

Leveraging the insights and experience gained from more than a decade supporting the world’s largest banks and FIs, the Actimize fraud profiling solution for PSD2 compliance combines expert-driven models and machine learning algorithms to produce the best possible risk score with the lowest rate of false positives.

Recently in the EU, the deadline passed for Payment Service Providers (PSPs) to have their Payment Services Directive (PSD2) APIs available for external testing. FIs are now faced with meeting the full requirements for a September 14 live date for these APIs.

Alongside this, the additional requirement of Strong Customer Authentication (SCA) adds further friction that firms will want to reduce. This means some serious catch-up for those who missed the first benchmark, while presenting challenges for mid-sized institutions with fewer resources available to implement the process.

The NICE Actimize fraud profiling solution for PSD2 compliance offers these benefits:

  • Provides a real-time risk score for every payment transaction and enables automated decisioning on alerting, delaying, blocking etc.
  • Reduces the need for Strong Customer Authentication (SCA) through risk-based authentication controls and proven low fraud rates.
  • Allows FIs to meet PSD2 Fraud Reporting requirements and PSD2 profiling compliance under Articles 2 and 18 without significant build and IT investments.

Craig Costigan, CEO at NICE Actimize said: “As a market leader in enterprise fraud in the cloud, with core strengths in authentication, NICE Actimize is prepared to support institutions of all types as they become PSD2 compliant.

“To win the battle against new fraud threats, financial institutions will need to have in place reporting and monitoring of Open Banking transactions, to provide insight into how they are being used and abused, looking for anomalies along with understanding any new fraud typologies. Our fraud portfolio is ideally suited to meet the needs of this game-changing environment.”

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