FICO Launches Fraud-Fighting AI Tech

Credit scoring and analytics company FICO is launching the FICO Falcon X and the FICO Financial Crimes Studio to help data scientists leverage artificial intelligence (AI) technology to help with the detection of financial crimes, according to a release by the company.

Falcon X is intended to help pinpoint and probe potential fraud and other financial crimes. Designed for the cloud, the solution is available on Amazon Web Services (AWS). Leveraging AML machine learning models and automated robotic processes, Falcon X removes the need for redundant alerts and helps to complete investigations more quickly.

“The worldwide rollout of real-time payments – including person-to-person transfers and mobile payments – has given rise to criminal threats that thrive on the fact that these payments are often irrevocable,” said Jason Keegan, who oversees the fraud line of business for FICO. “Criminals have exploited the rigid infrastructure that underpins our global financial system. This has allowed them to not only commit theft, but also [to] finance drug trafficking, human smuggling and terrorist activity. With Falcon X, we set out to help institutions detect and prevent criminal activity before the real-time transfer occurs.”

TJ Horan, FICO’s vice president of fraud and compliance products, said the product is something regulators across the globe have been seeking.

“Global regulators are encouraging financial institutions to evaluate new methods of detecting financial crimes,” Horan said. “We’re bringing to bear the orchestration of purpose-built machine learning models, contextual data and expert workflows, giving fraud and compliance teams unprecedented flexibility. We blended the latest analytic technologies with FICO’s payments and machine learning domain expertise to help banks strengthen their defenses, level the playing field and quickly operationalize capabilities that not only satisfy regulatory requirements, but also detect the earliest indications of criminal intent.”

FICO said the combined capabilities will help companies save a lot of money. The company believes there is about an 80 percent overlap in systems maintenance, data processing and operations of previous systems.