Financial Institutions See Significant Drop in Account-to-Account Transfer Fraud After Roll Out of Real-Time Risk Scoring from Fiserv
10 July 2023 - 11:37PM
Business Wire
New TransferNow® capabilities enable financial
institutions to enhance end-to-end risk management while providing
a better customer experience
Financial institutions are reducing fraud losses, improving
internal processes and enhancing the customer experience with the
implementation of two new capabilities from Fiserv, Inc. (NYSE:
FI), a leading global provider of payments and financial services
technology solutions. The addition of real-time risk scoring and an
automated high limits service to the widely used TransferNow®
solution from Fiserv has enabled financial institutions to
significantly reduce fraud loss dollars and fraud loss rates while
delivering a more personalized user experience.
Deployment of these TransferNow in-session risk controls led to
a 61% reduction in fraud loss dollars and a 65% reduction in fraud
loss rates for financial institutions using the service, compared
to a similar time period prior to deployment. This impact will be
widely felt, as TransferNow, which facilitates account-to-account
transfers within and between financial institutions, is used by
nearly 1,000 banks and credit unions, including seven of the top 10
U.S financial institutions.
“With the rise of real-time money movement, financial
institutions and technology providers have had to change their
strategies to secure transactions while delivering the speed and
convenience consumers expect,” said Kannan Srinivasan, Vice
President of Risk Strategy and Analytics at Fiserv. “Real-time
insights and automation are key components in this balancing act,
allowing for a high degree of security and efficiency without
compromising the customer experience.”
In-Session Risk Mitigation
The TransferNow real-time risk scoring engine leverages machine
learning to allow transactions to be scored while the user is in
the session initiating the transaction. Geolocation, account
validation, transaction velocity, and user and account tenure are
among the hundreds of factors that are assessed in the risk
evaluation process.
Potentially fraudulent transactions can be cancelled
automatically or put on hold for review, according to the risk
tolerance of the financial institution. After reviewing a
transaction, an investigator can release the transaction, cancel
the transaction, or suspend the account. TransferNow supports
holding transactions in-session to prevent a debit from occurring
while a potentially fraudulent transaction is under investigation,
which minimizes returns or chargebacks.
High Limits Service
The dynamic high limits service allows financial institutions to
offer higher transaction limits for populations of lower-risk
users, based on prior transactions and risk performance. If the
service is initiated, these lower-risk users can transfer high
dollar amounts while creating minimal exposure for the financial
institution.
Using the embedded administrative tool from Fiserv, banks and
credit unions can set qualification requirements to determine
eligibility for the high limits service, building trust with
established customers while mitigating potential fraud.
“Financial institution executives have told us they feel ‘caught
between a rock, a hard place, and a meat grinder,’ when it comes to
protecting customers while avoiding losses, improving efficiency,
and navigating an increasingly hostile market,” said Trace Fooshee,
Strategic Advisor at Aite Novarica. “Applied analytics and risk
modeling capabilities such as those employed by TransferNow can be
extremely powerful fraud management tools in this environment.”
TransferNow experienced significant growth between 2021 and
2022, with a 10% increase in active users and 17% increase in funds
moved.
“As the digital world evolves, financial institutions are
changing to meet customer expectations while continuing to deliver
the secure interactions upon which they have built their
reputations,” said Derek Swords, Vice President of Product
Management at Fiserv. “Our new TransferNow capabilities will help
financial institutions provide security and convenience for their
customers.”
In a world moving faster than ever before, Fiserv helps clients
deliver solutions in step with the way people live and work today –
financial services at the speed of life. Learn more at
fiserv.com.
Additional Resources:
- TransferNow® - fisv.co/TransferNow
About Fiserv
Fiserv, Inc. (NYSE: FI) aspires to move money and information in
a way that moves the world. As a global leader in payments and
financial technology, the company helps clients achieve
best-in-class results through a commitment to innovation and
excellence in areas including account processing and digital
banking solutions; card issuer processing and network services;
payments; e-commerce; merchant acquiring and processing; and the
Clover® cloud-based point-of-sale and business management platform.
Fiserv is a member of the S&P 500® Index and one of Fortune®
World’s Most Admired Companies™. Visit fiserv.com and follow on
social media for more information and the latest company news.
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version on businesswire.com: https://www.businesswire.com/news/home/20230710272090/en/
Ann Cave Vice President, External Communications Fiserv, Inc.
678-325-9435 ann.cave@fiserv.com Mark D. Jelfs Senior Manager,
External Communications Fiserv, Inc. 262-737-8244
mark.jelfs@fiserv.com
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