The hidden face of first-party fraud

FICO and Equifax convened a meeting with card and banking industry fraud experts on 23rd February to talk about new approaches needed to the mounting threats presented by, particularly, first-party fraud across the credit lifecycle and third party fraud at applications stage. The site was appropriate: the St James's Hotel...

Economically calibrating risk predictions

While there are many commentators trying the define what the “new normal” will look like in a post-crisis economy, there’s still a lot of new learning to be done and not much in the way of economic consistency. So it seems a good time to talk about companies that have...

Making cards less vulnerable to fraud (CBS video)

In the video below, CBS 5 San Francisco interviews FICO fraud expert and blogger Doug Clare in a segment on chip (smart) cards. Doug explains why these cards are less vulnerable to fraud than magnetic stripe debit and credit cards, and the challenges for adoption in the US. If you...

The hidden cost of free WiFi

Free WiFi is now a given in many public spaces such as coffee shops, airports and hotel lobbies. Most people don’t think twice about quickly accessing an open network, even to check a bank balance or pay a bill. But appearances can be deceiving, and not all networks are legitimate....

Zero to Hero: Aiming for Best-in-Class Originations

Emerging markets in Asia are seeing tremendous growth in credit applications at the moment, particularly in countries like the Philippines, Thailand and Indonesia. The Philippines, for instance, has witnessed credit card growth by volume between 10 – 15%, and Asia Pacific is expected to move from the third to second...

Chip and PIN lowers card fraud in Brazil

My colleagues have been blogging about the increasing adoption of chip and PIN technologies for credit and debit cards. This has taken place in many European countries, resulting in a 60% drop in counterfeit card fraud. We're also seeing this shift in Latin America, especially in Brazil, where all the...

How customer relationships impact credit risk

For banks that have made it their mission to deepen their product holdings with customers, here is some clear evidence that your relationship with a customer can influence their credit risk. FICO recently studied two Spanish clients’ loan performance, and the results indicated that the risk of a customer on...

Enterprise Fraud Management - The Final Frontier?

Most people who hear the word “enterprise” think Star Trek. In business circles, the term has been over-used to the point where it’s lost meaning. But when it comes to fraud management, the enterprise approach is gaining importance, not losing it. The reason is that fraudsters, recognizing that consumers will...

Banking’s new normal is emerging—but not where you expect

Over the past year, there has been plenty of writing about the prospect of stability—the so-called "new normal"—in post-crisis financial services markets. And during this time, we've continued to see plenty of destabilizing forces rock the industry. Everywhere, creditors are wary of future regulatory impacts on their business and of...