It’s all about the head-start. That’s the prime idea behind a new anti-fraud product from Fiserv, which said Monday (May 7) that it had partnered with Rippleshot, a fraud analytics firm, on an “early breach detection” tool.
Called Card Risk Office Fraud Warning, the service, billed by Fiserv as a “first-to-market solution to mitigate card fraud and data exposure,” can help financial institutions spot potential fraud one or two months before alerted by payment networks. Patrick Davie, VP of risk solutions for card services, discusses early fraud detection and its impacts on card issuer costs and revenue with Karen Webster in the PYMNTS “Walk to the Elevator” interview series.
“Data breaches continue to occur with increasing frequency, yet it can take time for financial institutions to confirm the extent of the compromise, making it imperative to identify and stop fraud as soon as possible and prevent further exposure and losses,” Davie said in the Fiserv announcement about Fraud Warning.
Fiserv, citing data from the Identity Theft Resource Center, said that 1,570 data breaches were reported in 2017, up 44 percent from the prior year.
Fraud Warning uses data derived from machine learning to identify fraud threats and potential breaches, Fiserv said. It “will make the solution available to more than 2,400 clients of Card Risk Office, nearly 400 of which use a non-Fiserv core processing platform,” the company said.
Financial institutions that defend against breaches earlier than they once did can save on the costs of issuing too many cards. Davie, in his “Walk to the Elevator” interview, said no more than 10 percent of cards with data exposed in breaches end up supporting fraudulent transactions. The Fiserv tool scores the risk potential of every card in a breach. The score indicates the level of likely fraud on each card going forward.
Overall, Fiserv said its Fraud Warning tool can reduce losses from fraud by an average of 10 percent.