Security & Fraud

Ethoca And FICO Team Up To Fight Card-Not-Present Fraud

Ethoca, the collaboration-based technology solutions company, announced Wednesday (Jan. 18) it inked a partnership with FICO, the analytics software company, in which card issuers using the FICO Falcon Fraud Manager will be able to connect to Ethoca’s Global Collaboration Network.

In a press release, Ethoca said that, by connecting to its Global Collaboration Network, card issuers can maximize the recovery of card-not-present fraud losses and avoid the chargeback process, which it said can be costly and inefficient. Through the partnership, FICO will provide a range of connection options so card issuers can participate in its network. Customers who use FICO Falcon Fraud Manager can take part in the Ethoca network via direct integration. Falcon uses analytics to evaluate and score card transactions for potential fraud. Ethoca Alerts get launched once a card-not-present fraud has been confirmed between the cardholder and the bank. Ethoca said merchant customers can act on the alerts immediately by stopping the fulfillment of fraudulent orders and issuing cardholders a refund. This takes hours instead of the weeks of delay typical of the chargeback process and prevents criminals from monetizing their crimes, Ethoca said.

“At FICO, we’re continuing to strengthen the arsenal of analytics-driven solutions we deliver to our clients and their ecosystem,” said Robert Duque-Ribeiro, vice president and general manager for Fair Isaac Advisors at FICO, in the press release. “Our partnership with Ethoca broadens our complement of fraud management solutions and expands the partnership between issuers and merchants.”

According to Ethoca, card issuers are facing increasingly high volumes of fraud claims and dispute cases that create cardholder experiences that are less-than-stellar. “Our partnership with FICO is yet another example of Ethoca’s commitment to making collaboration a no-brainer for the world’s leading card issuers and merchants,” said Trevor Clarke, EVP of business development at Ethoca, in the same press release. “FICO’s Falcon fraud software is trusted by card issuers looking to reduce fraud losses, mitigate reputational risk and ensure good customers are minimally impacted by false declines. Ethoca shares that vision and adds a new layer of value — recovery — that can be delivered only through more effective collaboration between card issuers and merchants.”


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

Click to comment