-- Live trials substantiate clear increased benefits and lift to banks for reducing false positives and detecting payment card fraud with implementation of powerful, mobile-enhanced, precision analytic platform. Seamless integration, lower operational costs, and low-to-no impact on customers are also among Finsphere solution differentiators.
BELLEVUE, Washington, Jan. 30, 2013 /PRNewswire/ -- Finsphere Corporation, a leading provider of identity authentication services, today revealed key findings from comprehensive live trials conducted with leading global financial services institutions. Finsphere's patented location-based fraud analytic platform, LASER (Location-Based Analytic Statistically Engineered Response), demonstrated outstanding improvements in reduction of false positives for card-present transactions as well as increased fraud detection and increased value detection rates for both card-present and card-not-present transactions over existing bank fraud risk management systems.
Benchmark results from the trials returned several noteworthy outcomes, including:
- Up to 55% reduction in false positive declines and intrusive customer contacts for card-present transactions (POS, ATM) identified as high risk by incumbent fraud management systems
- Up to 30% increase in fraud detection rates over existing fraud risk models
- Up to 20% increase of value detection rates (the amount of money saved as the result of a correct fraud prediction and/or more timely fraud detection) over existing fraud risk models
Worldwide, credit card issuers are faced with new and increasingly sophisticated types of attacks that traditional fraud management strategies are not designed to address. Fraud detection models developed in the late 1950s have evolved significantly, but Finsphere's neural network fraud analytics model is the first and only card protection solution to harness big data analytics by leveraging both financial data and telecom data. With over six billion mobile devices in use today, LASER's hybrid solution taps into this rich supply of mobile geo-location data that can be used as a dynamic identity authentication instrument to more accurately detect, prioritize, and manage security challenges while reducing operational costs and minimizing the impact to customers. The LASER analytics platform works by leveraging geo-location-based variables (such as mobile proximity, travel velocity, and other factors), along with over 200 additional account and transaction data variables to verify the identity of the card user.
Because the use of mobile or transaction geo-location data can be misleading (as in the case of centralized payment processing for card payment transactions) or missing (as in the case of online purchasing or other card not present transactions), Finsphere invested over 5 years in research and development to build a neural network analytics engine which augments geo-location correlation with predictive analytics. The live trials results showed that LASER fraud risk scores provided significant performance lift over incumbent fraud management systems, even in the absence of accurate mobile and transaction location data.
"The trial results confirmed that our fraud risk management technology can make a meaningful and significant impact on the day to day operations at major financial institutions," said Mike Buhrmann, CEO of Finsphere. "Further, a key takeaway from the proof-of-concept trials established LASER as a solution that could be seamlessly integrated with existing fraud management systems. We're proud to deliver a truly game-changing solution that is architected to simplify integration with those existing systems, while improving upon security, privacy, and data protection."
The live trials further revealed important improvements that directly target customer satisfaction, confidence, and loyalty. LASER fosters a non-intrusive approach, requiring no action on the part of the customer, such as notifying the bank of impending travel, responding to transaction verification calls, receipt of one-time-passwords, or any additional action that interferes with typical financial transactions as they are performed today. This non-invasive approach to security favorably impacts customer confidence and promotes increased card usage.
Live trials were conducted throughout 2012.
About Finsphere Corporation
Based in Bellevue, Washington, Finsphere was founded in 2007 to enable wireless carriers and enterprises to help protect their customers through identity authentication services. Finsphere utilizes sophisticated analytic platforms and applications, protected by US and international patents, for non-intrusive, privacy enhancing services to authenticate transactions across all industry segments. Finsphere is a privately held corporation whose major investors include Vodafone Ventures, Mohr Davidow, Shasta Ventures and Frazier Technology Ventures. For more information, visit www.finsphere.com.
SOURCE Finsphere Corporation