Fair Isaac's Newest Falcon One Solution Helps Banks Effectively Stop Fraud in Online Transactions

Fair Isaac Corporation, the leading provider of analytics and decision management technology, announced today the release of Falcon One™ for Online Access, a real-time, multi-factor authentication solution that uses industry-leading fraud analytics to provide maximum online fraud detection with minimal customer impact.

As part of Fair Isaac’s Enterprise Decision Management (EDM) software and solutions, Falcon One for Online Access is another key element in the Falcon One suite of interlinking enterprise fraud solutions. The solution may be deployed individually, or cooperate with other existing or added Fair Isaac fraud protection systems such as Fair Isaac’s Falcon™ Fraud Manager, which is used widely in the credit and debit card industries.

Falcon One for Online Access is a uniquely comprehensive system for protecting online financial transactions. It provides neural network-based transaction monitoring capability that learns customer behavior patterns and recognizes suspicious transactions, including patterns of transactions spanning online, debit, branch and credit transactions. The system leverages account knowledge from other companion fraud protection systems to provide complete coverage of customer assets and the channels that access them.

“There is no silver bullet in the fight against increasingly sophisticated online attacks,” said Ted Crooks, vice president of Global Fraud Solutions at Fair Isaac. “Only a comprehensive system combining both the human and electronic aspects of online activity and integrating with other fraud systems can provide a lasting solution. It’s customer confidence and fear in the balance, and at the end of the day, only comprehensive protection will deliver lasting success.”

In addition to unique behavior monitoring tools, Falcon One for Online Access monitors the details of the electronic behavior of the Internet communication channel used during an online session. This monitoring continues throughout the session in order to thwart “man-in-the-middle” attacks where a legitimate session is highjacked by an imposter.

Using both its transaction behavior intelligence and communications channel monitoring, Falcon One for Online Access provides continuous feedback on session risk to the bank’s web hosting system, allowing bank managers to determine the best level of intervention or confirmation at every level of risk. To assist with risk mitigation, Falcon One for Online Access provides optional transient passwords, an advanced identity authentication interview service, and a case management system for human or automated follow-up and confirmation of suspicious transactions.

“Online banking transactions are increasing, but security is still the number one consumer concern,” said Jerry Silva, research director for the TowerGroup Delivery Channel practices. “While U.S. consumers like to self-serve, less than half of them feel it is safe to conduct financial transactions online. Banks need to overcome these fears if they want to use this channel to its maximum potential.”

Leading advisory research and consulting firm TowerGroup estimates that online transactions in retail banking have increased from 2.4 billion in 2001, to 11.4 billion in 2006, and are expected to reach 24.4 billion by 2010 (“Customer Self-Service and Retail Banking in the U.S.: Rising Expectations, Challenges, and Opportunities,” published February 2006).

Falcon One for Online Access also can play an important role in helping financial services institutions meet regulatory compliance standards, including guidance issued by the Federal Financial Institutions Examination Council (FFIEC). Regulators expect banks to use enhanced authentication or risk assessment technology when authenticating the identity of customers using Web-based financial services and achieve compliance with the guidance no later than the end of 2006.