Due to the huge reduction in fraud – thanks to the Falcon Retail system – Sears, Roebuck has renewed its agreement with HNC to protect the credit accounts of 60 million customers.
“We have been pleased with the performance of our Falcon Retail system over the last three years, and we see value in continuing our relationship with HNC,” said Bill Redmond, Director of Fraud and Bankruptcy Management for Sears.
“Sears’ renewal of its agreement with HNC confirms that Falcon Retail is a valuable fraud detection solution for retail card issuers,” said Michael Chiappetta, group vice president for HNC Financial Solutions.
As part of the agreement, Sears will implement a credit card-specific Falcon model to protect its forthcoming MasterCard against fraud.
Using statistical models developed with HNC’s neural network technology, Falcon can determine the probability of fraud with each transaction. When the probability reaches a critical threshold, Falcon can either block the transaction at the point of sale, or send the case to a fraud analyst for action. Actions can range from changing the authorization response code to initiating an inquiry on the cardholder.
Sears, Roebuck and Co is a US retailer of apparel, home, and automotive products and services with annual revenue of $40 billion. The company serves families throughout the US through approximately 860 department stores, more than 2,100 specialized retailers, and online offerings.
HNC Financial Solutions develops intelligent customer value management software solutions for the financial services and e-commerce industries. Headquartered in San Diego, California, the company provides predictive software solutions for the financial, insurance, telecommunications, and e-commerce service industries.