Sears, Roebuck plans to use eFalcon, the fraud detection solution from HNC, on its website, after its success with Falcon Retail in protecting its retail card portfolio from fraud.
According to Media Metrix, Sears’ websites lead the department store retail category, attracting nearly 2.5 million unique visitors in July of this year.
“With the growing number of people shopping at sears.com, we determined that our best choice is a real-time fraud detection system designed specifically for online businesses,” said Ed Barclay, Sears vice president of Asset Protection.
Sears currently uses HNC’s Falcon Retail fraud detection system to protect the credit accounts of more than 60 million customers. The retailer also recently began implementing a credit card-specific Falcon model to protect its new, co-branded Sears Gold MasterCard offering. Sears is the largest issuer of private-label cards, with a card loan portfolio of nearly $27 billion.
“We’re proud to provide our solutions to Sears, which has long been proactive in the battle against fraud,” said Walter Lee, vice president of risk management for HNC. “eFalcon gives Sears the most comprehensive online payment fraud detection system available for its Internet operations.”
A recent survey by Gartner of the top 200 Internet merchants found that fraud is their primary concern, since they are liable for disputed purchases and 93% of online transactions are done with payment cards.
eFalcon uses neural network-based predictive software to examine transaction, customer, and merchant data in real time to enable e-merchants to prevent payment fraud.
Sears, Roebuck and Co is a retailer of apparel, home and automotive products and services with annual revenue of nearly $40 billion. The company serves families throughout the US through 860 department stores, 2,100 specialized retailers, and its website.
Headquartered in San Diego, California, HNC provides real-time insight into customer relationships based on transaction-level data, helping companies manage their relationships with individual customers. By predicting customer behavior, these companies can mitigate risk and attrition; improve customer service; develop marketing programs and detect fraudulent transactions.