EnterCard Doubles Fraud Detection and Cuts Fraud Loss Rate 60 Percent Using FICO Machine Learning
Highlights:
- EnterCard, one of Scandinavia's leading finance companies, has used the FICO® Falcon® Platform to reduce fraud losses (measured in basis points of sales) by 60 percent.
EnterCard has more than doubled its fraud detection rate, and uses FICO® Fraud Resolution Manager to automate communications with customers and verify transactions - EnterCard won the 2018 FICO Decisions Award for Fraud Control
EnterCard, one of the leading Scandinavian finance companies, has sharply reduced its fraud rate and generated massive savings using the FICO® Falcon® Platform to combat payments fraud and communicate with its 1.7 million customers in
For its achievements, EnterCard won a 2018FICO® Decisions Award for Fraud Control.
More information: https://www.fico.com/en/products/fico-falcon-platform
"EnterCard's story is a great example of deploying truly advanced analytics to solve the problem of fraud, which is moving faster than most businesses can match," said
"Safety for our customers is a key asset for EnterCard. We have improved our fraud program and the customer journey through real-time detection and resolution," said
EnterCard previously used a third-party provider for the key parts of fraud management. "Through an integrated solution we can perform the services in a better way, creating lower costs for the company and a much better customer experience," says
EnterCard implemented the FICO® Falcon® Platform with adaptive analytics and machine learning in-house for all countries, and moved to the cloud-based solution in 2017. This solution includes real-time fraud detection based on AI models, and automates communication with customers through two-way SMS and email.
In addition to identifying fraud faster and immediately working with customers to validate or block a transaction, EnterCard saw material cost savings for the block & reissue process. "By leveraging capabilities within Falcon, we can be more prescriptive in our approach to compromise management, and cost-effectively treat compromises while limiting impact to legitimate customer transactions," said Leclerc.
By managing its fraud program using the FICO Falcon Platform, EnterCard has logged a number of benefits:
- 128 percent improvement in fraud detection rate.
- 60 percent reduction in fraud net losses (measured in basis points) since 2013.
- Reduction in net loss per case of 60 percent.
- Net losses kept at the same levels the past three years despite the fraud attempt rate increasing constantly.
- Substantial reductions in operating and back office costs.
- Much quicker response to suspected fraud transactions, reducing fraud losses and increasing customer satisfaction. The transactions per fraud case shrunk from eight to three.
- Industry-leading Net Promoter Score in the Nordics.
- Cloud-based solution that ensures EnterCard is always running on the latest version of both Falcon and its models.
"EnterCard has a world-class fraud team and has invested in best-in-class AI analytics, case management and customer communications," said
Globally, the FICO® Falcon® Platform is the leading payments fraud management solution, protecting more than 2.6 billion payment cards. With the platform, organizations can cost-effectively reduce fraud losses, protect brand reputation, gain efficiencies and improve the customer experience across multiple products, channels and lifecycle stages.
About the
EnterCard is a Scandinavian company that provides payment and financing solutions to over 1.7 million customers across Scandinavia. EnterCard became a joint venture between
About the FICO® Decisions Awards
The FICO Decisions Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2018 judges are:
Sid Dash , research director at Chartis for risk management analyticsTanya Andreasyan , editor-in-chief, FinTech Futures / Banking TechnologyAnna Milne , editor at FinextraJulie Conroy , research director forAite Group's Retail Banking practiceAndras Cser , principal analyst - security and risk professionals atForrester - Mon Pernia, head of consumer collections,
Globe Telecom (2017 winner) John Rymer , principal analyst - application development & delivery professionals atForrester
The winners of the FICO Decisions Awards will be spotlighted at FICO World 2019, the
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in
Learn more at http://www.fico.com
FICO and Falcon are registered trademarks of
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SOURCE FICO
Emily Broadbent for FICO, Catalysis, +44 (0)20 7759 2017, fico@catalysis.co.uk