Falcon Fraud Manager

Falcon Fraud Manager

In financial services, many things are described as “real time,” including numerous online banking and payment transactions. However, there is no universal definition of real time. Is it real time if a transaction or event takes place within 10 seconds? One second? Certainly most people would say the time it takes to blink is fast enough to be considered real time.

We’ve just developed a new infographic that may make you re-evaluate what real time means. It illustrates how fast Falcon Fraud Manager detects bogus credit and debit card transactions—in just 40-60 milliseconds. That’s 5X faster than the average person blinks. It’s faster than a car airbag inflates. It’s even faster than a helicopter blade rotates.

Perhaps even more impressively, during those 40-60 milliseconds, the Falcon software completes 15,000 fraud detection calculations based on many pieces of data associated with each payment card swipe – including transaction amount, merchant profile, transaction location, point-of-sale device, time of day and account history.


The result is more security for card issuers and merchants, and a seamless customer experience. Everybody wins … except the bad guys.

Neural network technology from MAP. Using Visa Advanced Authorization and Falcon Fraud Manager we can perform sophisticated fraud scoring for each transaction to capture relationships and patterns often missed by traditional fraud detection methods. From designing custom anti-fraud strategies and using system reporting to measure success to making real-time authorization decisions and defining rules with Falcon Expert, you have a range of tools to help you detect and stop potentially fraudulent activity. The system also provides operational and statistical reports to help you measure the success of your anti-fraud program.


Primary system Falcon Fraud Manager components include:

> Falcon Debit. In conjunction with the Visa authorization system, the Falcon Debit scoring engine uses neural network-based statistical models and computational techniques to calculate a fraud score for each transaction based on individual cardholder and transaction data. If the score indicates a high probability of fraud, the system can create a fraud case and send it to a fraud analyst for action, block subsequent transaction attempts, or both. The fraud score also may be used to make real-time authorization decisions.

> Falcon Expert. Falcon Expert provides the ability to define rules to automate fraud prevention procedures. This rules-based capability allows the use of other relevant transaction data fields, in addition to the fraud score, when determining fraud actions.

> Authorization edit checks. Risk edits and authorization processing options help reduce your fraud exposure. Edit checks may be set at the financial institution, card group, or individual cardholder level. You may set limits separately for cash and POS activity, and timeframes may be set for single or multiple-day periods.


Authorization edit checks include, but are not limited to:

> Daily spending limits. Monitors dollars spent and cash back.
> Velocity checks. Monitors the frequency of card use.
> Expiration date checks. Determines if the card is expired and/or checks for an exact expiration date match.
> Name match. Reduces the risk of skimmed and counterfeit cards by comparing the Track 1 names on incoming authorizations to names on file. Name match also may be used to create more robust authorization rules in Falcon.
> PIN validation. Verifies entered PIN to the PIN value on file (available for ATM and select point-of-sale transactions).


Visa Fraud Protection Programs.

For greater card program protection and reduced fraud, these programs validate additional data in the authorization message:
> Cardholder Verification Value (CVV). Validates a unique three-digit code on the magnetic stripe of all cards to detect counterfeit or re-encoded cards.
> Cardholder Verification Value 2 (CVV2). Verifies a unique value, printed on the reverse side of the card, to reduce fraudulent card-not-present transactions.
> Dynamic Cardholder Verification Value (dCVV). Validates a dynamic three-digit code provided by the chip on a contactless card to detect fraud.
> Address Verification Service (AVS). Enables merchants to confirm a cardholder’s billing address to prevent fraud in the card-not-present environment.
> Flash Fraud Rules.  Flash Fraud Rules provide a parameter-driven set of rules to help catch and block suspect transactions falling into specific risk categories. Flash Fraud Rules are temporary rules to catch isolated fraud and stop authorization requests prior to approval.


Fraud Call Center Services.

Cardholder Support Services (CSS) offers a high quality, turnkey fraud call center solution for financial institutions using Falcon Fraud Manager. At your option, you may use CSS support around the clock (full-service plan) or part-time (shared-service plan). Whichever option you choose, Visa fraud analysts monitor your fraud scores, notify cardholders of suspicious activity, and respond to cardholders’ inquiries related to their fraud situations.


Fraud call center services include:

> Monitoring Falcon and managing Falcon Expert rules
> Initiating transaction confirmation calls to cardholders
> Responding to inbound cardholder calls on a dedicated toll-free number unique to your credit union
> Blocking accounts on high-risk cases or in confirmed fraud situations
> Communicating blocks and confirmed fraud conditions


Hot card/card activation services

In addition, CSS supports hot card statusing and card activation services. CSS can accept lost/stolen card notifications and card activation requests 24/7 from your cardholders. Around-the-clock hot carding helps protect your cardholders and financial institution from potential fraudulent activity. Full-time VRU capabilities enable cardholders to activate their new or reissued cards whenever it’s most convenient for them.