FNB fraudulent transactions down 30%
Fico, a predictive analytics and decision management software company, says it has saved First National Bank (FNB) more than R150 million with its Fraud Resolution Manager.
According to Fico, FNB is the first bank in South Africa to use its Fraud Resolution Manager system to communicate with customers when a potentially fraudulent transaction takes place.
“Using the Fico application, FNB can automatically contact a customer through voice calls and interactive SMS when a transaction is flagged as suspicious, usually reaching the customer while they’re still at the point of sale,” Fico said.
Fico said that FNB reported that this has reduced the number of fraudulent transactions per case by 30%.
“Card fraud in South Africa grew 22% in the first nine months of 2013, compared to the same period in 2012, according to the South African Banking Risk Information Centre (Sabric),” Fico said. “Sabric put 2013 card fraud losses at R366.8 million.”
Fico said that FNB had a need to quickly detect suspicious activity, but added that it was often difficult to validate these transactions fast enough to block fraudulent activity.
“At the same time, the bank had to avoid blocking genuine transactions. With the FICO solution, FNB is able to validate genuine transactions, focus on the real fraud and improve customer service,” Fico said.
According to Fico, FNB is currently using the Fico Fraud Resolution Manager in its Core Banking Solutions area to protect cheque card and debit card accounts.
“It will soon be deployed to cover the bank’s entire 10 million South African cards, and FNB has deployed specific strategies for overseas and out-of-hours transactions,” Fico said. “FNB will soon roll out the solution to other Southern African countries.”
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