Euronet Launch Fraud Detection Solution

Thursday 17 June 2004 00:54 CET | News

Euronet Worldwide, has launched its card risk management and fraud detection system, the latest software to complement the Euronet Integrated Transaction Management (ITM) product line.

The fraud detection system enables proactive, systematic card fraud suspect analysis detection. It provides an automated way of analyzing card transactions by scoring their likelihood of being fraudulent. This solution is easily integrated within existing Euronet customer systems as well as the systems of most transaction and card processing systems, monitoring both issuing and acquiring transaction activity including ATM, POS, merchant, debit and credit from a single instance of the software. Alaric Systems Ltd., a leading supplier of advanced technology solutions for the card payments industry, developed the fraud detection solution, called Fractals. Euronet will distribute Fractals as part of an agency agreement with Alaric Systems. Euronet will be selling the solution as a complementary software solution to new customers and its substantial installed customer base throughout more than 50 countries. With the alarming increase in fraud today and in certain regions the liability shift from consumer to the issuing financial service, Euronets fraud detection solution offers financial institutions significant loss reduction and improvement to the banks exposure. Visa International reports that counterfeit fraud is growing annually at a rate of 65%. Fraud losses are only part of the problem. The cost of processing chargebacks, the time and effort of customer service staff and fraud investigators and penalties from card schemes exceed fraud loss. Euronets fraud detection system is a modular system with two layers of fraud protection. The first is a rules-only module designed and target to the mid-size banking market where volumes warrant protection but at a lower cost of entry. The solution also offers a system strategy component designed for the high-volume transaction processors. It maintains spending and usage patterns so it can detect fraud at the earliest possible moment. The Fractals models recognize complex, hidden patterns of fraud, as well as emerging schemes, while minimizing unnecessary referrals and interference with legitimate transactions. With the integrated suspect analysis it allows investigators to focus on the highest priority transactions. The fraud detection system delivers a customized fraud detection solution within the framework of a powerful product. The solution, written in Java, is portable to multiple platforms. It readily accommodates new system strategies to cope with new fraud patterns. State of the art technology and programming tools were used to design and code the software solution. The modularity of the detection system enables Euronet to have a fraud solution that is amendable for both large and small customers.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce