Bank reports considerable drop in
fraudulent transactions, including vishing fraud, and declines fraudulent
transactions in more than 2,700 cards over six months
ACI Worldwide (NASDAQ:
ACIW), a leading global provider of real-time electronic payment and
banking solutions, today announced that Federal Bank is leveraging its UP
Payments Risk Management solution to identify fraudulent card activity,
mitigate losses and enhance customer relationships. Through ACI’s solution, the
bank can enhance fraud detection capabilities with insights into real-time
status of card transactions based on pre-defined parameters, empowering the
bank to provide better customer experience and security.
Federal
Bank, one of India’s largest private sector commercial banks, has more than
2,800 touchpoints (over 1,200 branches and over 1,600 ATMs) spread across the
country, serving a customer base of more than 10 million. The bank is a
technology pioneer among India ’s
private sector banks and was one of the first to computerize all its branches.
To address the evolving threat of fraud and offer additional security for
digital transactions, Federal Bank sought to deploy a rules-based solution with
real-time monitoring for deterring, detecting and blocking fraud. ACI
customized its fraud and risk management solution for Federal Bank at two
action levels: cards and merchants.
“Our
objective was to equip Federal Bank with real-time reactivity and adaptation to
emerging fraud trends, enabling faster decision-making,” said Kaushik Roy, vice
president and country leader – South Asia , ACI
Worldwide. “We’re delighted to partner with the bank in its ongoing digital
transformation journey, delivering a solution that incorporates fraud and
payments data through proprietary as well as third-party modelling."
According to RBI
data, from October to December 2019, debit card fraud alone reached 11,058
cases involving Rs 94.5 crore, or USD $12.4 million. While traditional
rules-only fraud detection systems are adequate at detecting known threats,
they are not as effective or efficient at uncovering new criminal fraud
strategies or zero-day attacks, putting banks and their customers at risk.
Federal Bank required a counter-fraud solution for both its cardholders and
merchants, with real-time and near real-time facilities and mission-critical
features that are easy to deploy, responsive and reduce the financial impacts
of fraud.
After deploying UP Payments Risk Management for
real-time monitoring of card transactions, the bank saw a considerable drop in
fraudulent transactions, including vishing fraud. In addition to alerting
customers of risks, the solution also includes automated alerts that have
helped the bank recognize and decline potential fraudulent transactions on more
than 2,700 cards over a recent six-month period.
MUMBAI—June 10, 2020