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Predator is a transaction fraud detection solution offered by DecTech
Solutions.
These days fraud losses have the ability to severely impact the profitability
of cards and transaction accounts portfolios. Principally there are three types
of transaction fraud:
Issuing Fraud
- Counterfeit/skimming;
- Internet/MOTO (cardholder not present);
- Lost/stolen;
- Identity theft;
- Account takeover;
- Non-receipt;
- Change of address/phone numbers and reinstatement/replacement;
- Unusual account activity.
Acquiring Fraud
- Card number testing;
- Transaction splitting;
- Collusion/cash release;
- Fraudulent merchant activity;
- Overseas credit card fraud;
- ATM fraud.
Money Laundering/Branch/Cheque
- Unusual transaction behaviour;
- Foreign currency transactions;
- Internal breaches of security;
- Cheque fraud.
But it’s not all bad news for card issuers and banks. The good news
is that the majority of transaction fraud can be identified by rules that compare
incoming authorisations/transactions against the previous transactions of the
account holder.
Accounts can be taken over but generally the fraudster will not be aware
of the genuine cardholder’s normal spending behaviour. Therefore, using
intelligent rules that compare new transactions to historical transactions, abnormal
transactions that may potentially be fraudulent can be identified. Then, investigation,
verification and, if necessary, blocking of the card or account can take place.
Business benefits
- Prevent losses by identifying counterfeit, internet and lost/stolen fraud
early and blocking the card;
- Transactions can be fraud checked online or in batch mode;
- Powerful tool for fast investigation and database interrogation;
- Fraud rules can be changed instantly to identify the latest modus operandi;
- Enable the fraud analyst to focus on the highest risk transactions first;
- Set rules to identify abnormalities in velocity, merchant category, ticket
size, spending patterns, geographical location and time
of transaction;
- Identify early high risk transactions and take fast investigatory and preventative
measures;
- Makes your competitors an easier target for fraud;
- Continually improve your transaction fraud prevention strategies.
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