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Actimize Helps U.S. Bank Fight Fraud in Real-Time

July 21, 2009

Officials with one New York-based provider of transactional risk management software for financial services is touting the success that one top 5-U.S. bank was able to achieve after deploying their so-called “Wire and Automated Clearing House” solution for fraud prevention.
Officials with Actimize, a NICE Systems company, say their fraud prevention solution has helped the bank to better detect wire fraud attempts in real-time and achieve 100 percent ROI in six weeks.
According to Avivah Litan, an analyst at Gartner (News - Alert), the use of real-time risk assessments has grown with the introduction of more real-time transactions such as wire transfers or the recently introduced real-time ‘faster payments’ for the United Kingdom banking sector.
These transactions, Litan said, “demand that real-time risk assessments be made in seconds or sub seconds to fulfill a transaction requests.”
“Only a few software providers have proven this capability in the field at large complex client implementations.”
Specifically, the bank was able to replace the use of rule-based reviewing of wire transactions, which limited the ability to stop suspicious transactions in real-time. At a 1-to-15 false positive rate, the Actimize solution has now increased the bank’s ability to detect 73 percent of wire fraud attempts. The savings recognized by preventing fraud losses also helped the bank to recover its investment in the software license in just six weeks.
“True, synchronic real-time blocking is a critical feature for banks, especially as wire transaction times shorten globally,” said Amir Orad, executive vice president and chief marketing officer at Actimize. “As we’ve seen in the United Kingdom, the recently implemented ‘Faster Payments’ initiatives can result in ‘faster fraud’.”
Actimize recently released findings from an independent survey that looked at mass compromise situations where large amounts of sensitive data is stolen at one time.
The survey uncovered a rise in fraud claims with a number of respondents, who reportedly claimed that they expect fraud attempts to increase from last year.

To combat the risk, Actimize points to real-time prevention solutions that can help companies to analyze and stop fraudulent transactions in real-time.

“Based on this research, too many banks lack sophisticated risk management tools when dealing with mass compromises and end up excessively re-issuing cards - this is not a cost effective or long-term solution,” Orad said.
Actimize’s solution offers a risk management framework for real-time wire and ACH fraud prevention as well as message filtering and is compliant with all monitoring guidelines.
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Stefania Viscusi is an assignment editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Stefania’s articles, please visit her columnist page.

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