Swiss Issuer UBS Card Center Stops 74 Percent More Fraud with FICO AI and Machine Learning
Chennai, 15 November , 2017: Highlights: • UBS Card Center stopped 74 percent more fraudulent transactions in 2016 than in 2015, and saved potential losses of CHF172 million (about $172 million) using FICO®Falcon®Platform and related FICO technology. • UBS Card Center has won the 2017 FICO Decisions Award for Fraud Control. • UBS Card Center processes roughly 25 percent of the credit cards in Switzerland. • FICO® Falcon®Platformis the leading card fraud solution, protecting 2.6 billion payment cards worldwide. UBS Card Center, which processes roughly 25 percent of the credit cards in Switzerland, has cut the amount of fraud write-offs per compromised card,stopped more fraudulent transactions and reduced false-positive rates using the FICO® Falcon®Platform. The card processor stopped 74 percent more fraudulent transactions in 2016 than in 2015, and saved potential losses of CHF172 million (about $172 million). UBS Card Center achieved these gains by leveraging the latest artificial intelligenceand machine learning capabilities of the Falcon Platform, including the use of FICO®Fraud Predictor with Merchant Profilesand adaptive analytics. For its achievements, UBS Card Center has won the 2017 FICO Decisions Award for Fraud Control.
“In times ofconstant cost optimization, we need to keep fraud write-offs to the veryminimum,” said Marcel Drescher,director of fraud services at UBS Card Center. “We were facing new business volumes, but didnot have the ability to increase staff numbers to absorb the new volumes.Proactivity in combatting fraud, paired with very high standards on customerexperience and satisfaction, are major challenges we're facing on a day-to-daybasis.”
To solve thischallenge, fraud experts at UBS Card Center used the free-form rule writingwithin FICO Falcon Fraud Manager to create complex rules that deployed the AI-based FICO®Falcon® FraudScore and Falcon’s innovative adaptive analytics, which use the resultsof fraud investigations to automatically fine-tune the neural network models inFalcon. “These custom rules, combined with the advanced analytics, was the onlyway to improve false-positives and account detection rates,” Drescher said.
UBS Card Center alsotook a new approach — for the first time, it began to directly declinetransactions that appeared to be fraudulent, rather than creating a FalconFraud Manager alert to be reviewed with the customer.
“This saved manpower— only with further fraudulent activity on a card is an alert created andcustomer contact established,” Drescher said.“Using this approach, we have beenable to manage a 42 percent increase in fraud cases without the need to bring innew staff resources.”“I was impressed byUBS Card Center’s advanced use of fraud technology to meet their challenges,”said Julie Conroy, researchdirector at the Aite Group, one of this year’s judges. “In particular,their use of adaptive analytics shows that they are using powerful AI andmachine learning techniques to their full advantage.”
“UBS Card Center isan amazing success story in the world of payments fraud,” said Torsten Mayer, vice president for the DACHregion for FICO. “They have excellent know-how and they deploy thelatest breakthroughs in fraud detection to keep their losses low, theirfalse-positives low and their customer satisfaction high. Bravo to Marcel andhis team!”The FICO® Falcon®Platform is the leading card fraud solution, protecting 2.6billion payment cards worldwide. UBS Card Center, a longtime user of the FalconPlatform, has reduced fraud losses per compromised card by 85 percent since2000.