BROOKFIELD, Wis.—Fiserv has introduced what it is calling a first-of-its-kind intelligent fraud detection solution for card issuers of all sizes, designed to help minimize fraud losses while maximizing legitimate cardholder spend for a full range of card types.
“Advance Defense from Fiserv is powered by cognitive artificial intelligence (AI), recommending tailored fraud rules based both on data from the specific card-issuing institution and a consortium through which fraud patterns can be identified at the merchant ID, state or country level,” Fiserv said. “Issuers no longer need to spend days or weeks analyzing fraud data to enhance prevention strategies as Advance Defense will instantly recommend rules to better identify fraud and minimize false declines, optimizing the consumer experience.”
Added Julie Conroy, research director at Aite Group, “Given the evolving landscape of payments fraud, this innovation should aid financial institutions as they work to reduce cardholder friction and reduce fraud. By staying nimble with Advance Defense, issuers can reap the benefits of increased revenue, better data access, improved operational efficiencies and top-of-wallet position with their cardholders.”
What’s Included
Fiserv said the “differentiated functionality” of Advance Defense includes:
- A robust dataset that provides a rich foundation for higher levels of fraud detection due to enhanced data retention, integration of confirmed fraud data with real-time authorization data, and the ability to add data sources, including suspect fraud and settlement information
- Advanced analytics with a fully automated environment for fraud analysis and rule generation, utilizing transparent data points and statistics, including fraud detection rates and false decline ratios
- Customizable modeling incorporating 100% real-time FICO fraud scoring, indicators of unusual purchasing behaviors, and the ability to import custom models, all with a consortium level view
“This first-of-its kind robust fraud management experience was created to empower card-issuing institutions’ to automatically identify evolving fraud patterns for immediate mitigation,” said Patrick Davie, vice president, product strategy, card services at Fiserv. “Sophisticated fraud prevention is a competitive advantage, and with Advance Defense financial institutions big and small can improve the speed at which true fraud is exposed and remediated, while keeping false alarms to a minimum.”