Fraud Detection

Card fraud is rising at an alarming rate. Fraudsters, typically highly sophisticated international organized crime rings nowadays, are using increasingly advanced methods to obtain and use consumer information to commit payment fraud.

Alongside conventional credit and debit cards, we are seeing new pervasive payment channels such as prepaid cards, e-payments and now m-payments. These enhanced payments channels generate fresh opportunity for card issuers and merchants to infiltrate new consumer markets, however, in doing so, they are also exposing themselves to new fraud risks. The highly informed fraudster will be keen to shift their efforts to rapidly exploit emerging and vulnerable payment channels and less sohpisticated payments markets, meaning patterns can be expected to change more quickly in the future and therefore the need for a dynamic fraud detection system will grow.

Fraudsters will alter their behaviour to avoid establishing fraud patterns detectable by automated card transaction analysis systems. This highlights the importance of having a readily adaptable fraud detection solution which can incorporate evolving fraud patterns and customer profiling strategies to identify transaction anomalies. Alaric's Fractals provides a modular, easily configurable and scalable fraud detection solution for issuers, acquirers (merchant and ATM) and processors.

Changes to payment channels, such as the planned introduction of Faster Payments in the UK, which will reduce clearing times on electronic payments between banks, expose the banks to increased fraudulent transfer risks with a reduced window for interception and blocking. Therefore, real-time card fraud detection is critical for many institutions in their fight against fraud. Fractals can be directly coupled to Authentic to provide an integrated real-time authorization and card fraud detection environment.