AI-powered fraud management: Fiserv and FICO redefine security – News

As artificial intelligence adoption grows, AI-powered fraud management is becoming essential for detecting and responding to threats in real time.

To address the growing need for real-time fraud prevention, Fair Isaac Corp. and Fiserv Inc. have partnered to leverage advanced tools such as Adaptive Analytics, Global Intelligent Profiling and Fraud Predictor. These technologies enable real-time detection, behavior-based profiling and self-learning capabilities, according to Charlotte Ritonya (pictured, right), vice president of risk and fraud issuing at Fiserv.

 “As we provide the fraud managed services, kind of an extension to the financial institution, we go to market with kind of a good, better, best,” Ritonya said. “In the best model, we use FICO Adaptive Analytics, Global Intelligent Profiling and Fraud Predictor. Adaptive Analytics really looks at refreshing the model daily, pretty much, learning new fraud patterns and keeping up to date. Global intelligent profiling is [automated teller machine] monitoring, and then Fraud Predictor helps us understand the propensity of fraud at the merchant. When we bundle all three of those together, it’s pretty powerful, and we see great results at our highest level service.”

Ritonya and Alexander Graff (left), senior vice president and managing director at Fair Isaac Corp., known as FICO, spoke with theCUBE’s Rob Strechay at FICO World, during an exclusive broadcast on theCUBE, News Media’s livestreaming studio. They discussed how FICO and Fiserv are advancing AI-powered fraud management through their latest collaboration. (* Disclosure below.)

Inside FICO and Fiserv’s AI-powered fraud management approach

By helping distinguish between legitimate and fraudulent behavior, AI reduces the number of flagged transactions that inconvenience customers. That precision is a core benefit of AI-powered fraud management, according to Ritonya.

“Fiserv moves money for thousands of issuers, thousands of banks and millions of merchants globally,” she said. “In the world of fraud, it’s important that we have low fraud basis points … and using FICO systems, we’re happy to please our clients at half the fraud basis points in the industry. Most recently, we had a client convert to us, a Kentucky-based client, with $3 billion in assets. Their fraud basis points and friction at the point of sale were already very low, and I’m happy to say we reduced it by 10% more.”

Fiserv and FICO have steadily evolved their approach to fraud management after more than two decades of partnership. The shift toward AI-based solutions has been shaped by that long-term collaboration, according to Graff.

“I think that we have been partners for 25-plus years,” he said. “At the end of the day, the solution that we provide together is about providing the best customer experience, and this is why we use artificial intelligence in our solution for almost three decades because we have our models learning with every single transaction, what allows us to react faster to any kind of condition that we’ve seen in the market.”

Here’s the complete video interview, part of News’s and theCUBE’s coverage of FICO World: 

(* Disclosure: TheCUBE is a paid media partner for FICO World. Neither FICO, the sponsor of theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or News.)

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