PULSE extends its partnership with FICO

The collaboration between PULSE and FICO focuses on delivering advanced fraud-detection technologies aimed at minimising losses and risk exposure for financial institutions, merchants, and consumers on a global scale. This extension will further support PULSE in enhancing its DebitProtect suite, which is a set of solutions designed to mitigate fraud risks. These solutions are powered by the state-of-the-art FICO Falcon Fraud Manager. 

Drawing insights from the vast network of around 9,000 participating financial institutions, PULSE has strategically integrated the FICO Falcon Fraud Manager at the network level. Institutions utilising PULSE's DebitProtect and DebitProtect Authorization Blocking solutions, which respectively provide fraud alerts and automated authorization blocking, gain several advantages from the wealth of dynamic data within this network. 

One notable aspect of this partnership is the incorporation of FICO's latest fraud model into PULSE's operations. The innovative approach segments card-not-present transactions from card-present ones, leading to improved scoring capabilities. This enhancement significantly bolsters the network's effectiveness in identifying fraudulent activities in ecommerce and other card-not-present scenarios. This development is particularly relevant as digital payment methods gain traction among consumers and fraud attempts in these channels rise. 

In the official press release, representatives from PULSE emphasised the growing significance of their enhanced fraud-detection and blocking capabilities. They also highlighted the impending effects of the Federal Reserve's Regulation II clarification, which is projected to shift more card-not-present transaction volume to independent debit networks such as PULSE. The extended collaboration with FICO positions PULSE to stay at the forefront of counteracting emerging debit fraud trends. 

Officials from FICO highlighted the commitment and adaptability of both PULSE and FICO in delivering security tools that cater to the evolving needs of financial institutions. They also acknowledged that FICO's Falcon Fraud Manager model draws valuable insights from PULSE's network of debit card issuers, enhancing its efficacy. The ongoing collaboration between PULSE and FICO remains dedicated to safeguarding the interests of all stakeholders within the debit ecosystem.

Debit issuers and fraud mitigation efforts

According to the 2023 PULSE Debit Issuer Study, conducted in collaboration with West Monroe, debit issuers are placing significant emphasis on combating fraud and implementing mitigation measures. Nearly 90% of survey respondents reported an increased impact of and attention to fraud throughout 2022.  

A considerable majority (76%) of respondents acknowledged enhancing their fraud models in the previous year, aiming to reduce both fraud losses and false positives. Additionally, efforts encompassed sharing educational resources with customers, enabling self-service functionalities, refining rules, and investing in authentication tools.