Credit Card fraud is a rare event. The incidence varies from bank to bank and country to country but on average it represents less than 0.1% (EU average is about 0.08%) of all transactions and accounts for about 0.2% of the total value of transactions.

In the UK alone, losses amount to £500M per year ( APACS, http://www.apacs.org.uk ).

The total value of Credit Card transactions per annum for even a small Issuer is often hundreds of millions of Euros. The low cost of ownership of DETECT means that, given an estimated loss of 0.2%, even the smallest bank would see benefit from DETECT, which would pay for itself very rapidly.

DETECT is a new product based on many years experience of classification and optimisation problems and the particular problem of credit-card fraud detection. Its risk-engine is based on a unique algorithm that delivers high-detection performance. As well as addressing the central problem of fraud detection, DETECT has been designed for ease of use and low care and maintenance, hence providing a cost-effective and non-invasive solution.

DETECT can be deployed to address fraud as experienced by Issuers, Acquirers, Payment Processors and Merchants.

Some of the benefits of DETECT are:

• Low Total Cost of Ownership Fraud detection needs to pay for itself. You do not need to expose your organisation to high financial risk and have to recoup investment over a period of several years. The benefit is immediate.

• Alert Management allows you to control many aspects of the fraud management process:

  • Alert rate to optimise use of staff or maximise value of alerts
  • Alert ranking fast access to the current highest risk cases
  • Risk-based routing route alerts to different personnel via a choice of channels
  • Choice of risk metrics financial risk exposure, probabilistic… to suit your risk policy
  • Transparent reporting provides full explanation of alerts to aid case investigation

• Case Management Tools for risk assessment support

  • Account histories single click access to full account history
  • Annotations record notes and comments for individual alerts or cases
  • Case allocation allocate cases to users
  • Case sensitivity increase or decrease risk level for individual cases

• Immediate Results. DETECT is provided with preconfigured fraud models that allows it to start detecting fraud immediately without the need for calibration or data-tagging.

The pages in this section are a summary of the DETECT system and some of its features and benefits.