Acquirer Fraud Detection Modeling

When it comes to fraud detection modeling, Acquirers and Independent Sales Organizations have their hands full these days. Whether it’s developing rules to determine which merchant transactions represent high fraud risk, or developing ways to pin down fraud testing on a merchant’s account you want to make sure your models are developed for maximum “lift”, and managed so they preserve that lift by staying up to date.

But there are also a host of new modeling challenges on the horizon. You may find the opportunities offered by PIN based debit to be attractive, but you know you’ll need to develop ways to combat PIN compromise through compromised POS terminals. Then there’s the risk that current economic conditions will lead to an increase in collusive merchant fraud schemes, requiring you to re-examine the variables and weights assigned in your merchant fraud models.

The Fraud Management Institute can help you meet these challenges in a variety of ways. Our experienced modeling team can help you select from a variety of techniques, from simple business rules to sophisticated methods like support vectors and neural networks. They can also assist you in developing models that are tuned for your unique business conditions.

We can also help you evaluate the performance of your existing models and upgrade them if necessary. Our staff has years of experience in benchmarking model performance, as well as analyzing models to determine population stability and identify possible score migration. By re-optimizing your selection of attributes, we can make sure that your models utilize the data that is most indicative of current fraud potential.

Finally, we can help you set up a model governance process that ensures all your models stay current and compliant with the latest regulatory requirements. Using our unique Fraud Management Lifecycle® methodology, we can help you establish business processes that regularly review all your models, and upgrade them when their performance drifts out of your pre-specified operating parameters.

What our modeling capabilities can do for you:

  • Help you select the modeling technology that’s best suited to your business needs.
  • Develop state-of-the-art models using the latest in attribute selection methods.
  • Evaluate the performance of your existing models, and recommend upgrades if necessary.
  • Help you set up a model governance process that ensures your models stay up-to-date as well as compliant with the latest regulatory requirements.

You will be interested in these services if:

  • You face a new modeling challenge and don’t have the staff to meet it.
  • You want to make sure your existing fraud models are the best they can be.
  • You want to stay compliant with current regulations regarding model development and governance.

The key benefits you will receive from this service are:

  • The ability to respond rapidly to new and changing patterns of merchant fraud.
  • The ability to identify suspicious transactions while minimizing the impact on your merchants and their legitimate customers.
  • A suite of models that delivers the business results you require.
  • Regulatory compliance through an established model governance process.