FICO, a leading predictive analytics and decision management software company, has announced the availability of a proximity correlation service for credit and debit card issuers aimed at improving the safety of payment card transactions.
The FICO Proximity Location Service, part of FICO Fraud Resolution Manager, compares the physical location of a cardholder’s registered mobile phone against the location of the ATM or POS terminal where the card is being used. Based on the proximity, a cardholder account can be blocked or cleared for further activity.
Validsoft – Redefining Fraud Prevention
In trials of the service with UK card accounts, the ability to perform this proximity matching reduced the number of “false positives” (genuine transactions investigated because they appear to be fraudulent) on international transactions by as much as 70%. Several UK banks are now developing deployment plans for the new FICO service, which has been developed in partnership with ValidSoft.
“Customer service is one of the driving forces behind improving fraud protection today,” explains Gabriel Hopkins, senior director, Product Management at FICO. “Banks are trying to perfect a tricky balancing act – protect customers without causing undue frustration for cardholders who travel or who use their cards in new locations.”
“Proximity correlation adds a powerful new tool that can help banks eliminate a great source of frustration for their customers who travel. With this service, cardholders can use their cards in other countries with significantly lower risk of being declined.”
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