Fiserv Detects More Than 90 Percent Of Fraud With Payment Fraud Manager Tool

Fiserv, the provider of financial services technology solutions, announced on Monday (Sept. 19) that its Payment Fraud Manager tool detected more than 90 percent of fraud while reviewing only 2 percent of the transactions.

In a press release, Fiserv said Payment Fraud Manager, which was built to help financial companies detect and stop fraudulent electronic payments in real time, is one of the most advanced fraud prevention solutions for electronic fund transfers across all major settlement channels, including SEPA, SWIFT, Fedwire and ACH.

According to the company, the new ACH predictive model uses a data consortium model to help stop fraud before a payment leaves the originating financial institution. That, the company said, provides improved risk mitigation to both financial institutions and their customers. By leveraging industry-level data from hundreds of financial institutions of all sizes across the U.S., data scientists at Fiserv have created empirically derived, statistically proven predictive models that it said are more effective in the detection and prevention of fraud than relying on data from an individual financial institution. These models, Fiserv went on to note, produce a highly predictive real-time risk score for every transaction. By scoring all transactions in real time, high-risk payments can be suspended immediately, prior to incurring a loss, for review and decision-making. Another advancement for Payment Fraud Manager includes an enhanced profiling engine that assures more accurate analysis and anomaly detection, while updating behavioral profiles 30 percent faster.

“EFT fraud attempts are increasing in size, frequency and sophistication,” said Jason Vazquez, senior vice president, deputy chief risk officer and BSA/AML compliance officer for Sterling National Bank, in the press release. “Fraud solutions from Fiserv give us best-in-class detection and minimize false positives. This empowers our bankers to make informed real-time decisions to stop payment fraud, while still maintaining a high level of service to our customers.”