Visa Desjardins, the primary issuer of Visa cards in Quebec, is to implement HNC’s fraud detection system for its credit card portfolios.
“Augmenting our detection systems with HNC Falcon is the logical next step to to reduce fraud,” said Louise Paquette, chief security officer at Visa Desjardins.
After years of a 40% card fraud rate during the latter part of the 1990’s, Canadian firms are starting to see a decline in the rate due to their increased use of neural network fraud detection solutions.
According to the Canadian Bankers Association, credit card fraud cost Canadian financial institutions and card issuers nearly $227 million (Canadian) ($156 million US) in 1999. This figure dropped to $203 (Canadian) million for the 12-months ending June 30, 2000.
Visa Canada reported 1999 credit card losses at $150 million (Canadian), and had projected losses in 2000 to top the $200 million mark. Instead, losses from card fraud dropped approximately 40% for the year.
HNC’s list of Canadian Falcon customers includes major institutions such as CIBC, Toronto Dominion, and Canada Trust.
“We’re glad that Falcon is helping stem the tide of payment card fraud in Canada, as it has done overall in North America,” said Michael Chiappetta, vice president of customer analytics for HNC. “We’re confident that Visa Desjardins will gain the reduced fraud rates with which our other Canadian customers have benefited.”
Falcon, a neural network-based predictive software system, examines transaction, cardholder, and merchant data to detect fraud. It currently protects more than 400 million payment card accounts worldwide.
About Mouvement des caisses Desjardins
With more than 36,000 employees and overall assets reaching $80 billion, the Mouvement des caisses Desjardins is the top financial institution and the largest private employer in Québec. It is the only institution to offer a full range of financial products and services through its network of caisses (ATMs) located throughout Québec.
About HNC Software Inc.
HNC provides customer insight solutions including intelligent response, decision management, and customer analytics software that enables in financial, telecommunications, eCommerce and insurance companies to acquire, manage and retain customers.