A 200% Reduction in Credit Card Fraud Saves $25,000 a Day

Challenge

• Headquartered in Istanbul, Disbank (acquired by Fortis) is one of the leading financial institutions in Turkey, operating an advanced distribution network with 162 branches, 254 ATMs, 94 kiosks, 65,000 POS’s, 6 web portals, internet banking and a call center.
• Fierce competition in the industry, especially in the credit card business, forces banks to grow their customer bases and target lower value segments.
• The cost of fraud was increasing faster with an increasing number of issued cards.
• The manual process in place only allowed the bank to review at most 13% of new credit card applications.
• The bank needed to acquire solid analytical and prioritization skills in order to reduce the number of fraudulent applications.

Solution

• Disbank partnered with KXEN to aggressively grow their customer base, while reducing fraud rates.
• In less than 15 days the bank proceeded to implement a system which created fraud models on a Windows desktop and scored all the individual applications.
• The resulting reports include a fraud score for all individual applications and are forwarded to 13 fraud agents.

Results

• In just one day Disbank’s Credit Card Security Team was able to identify 92% of fraud cases with a high degree of reliability.
• Disbank increased the number of identified fraudulent applications by 200% from 7 to 21 per day.
• Savings of $25k per day, which returned more than the entire software investment within the first week.
• More than 50 fraudsters using counterfeit cards at merchant locations or made fraudulent applications have been arrested.
• Increased the number of fraud cases caught by a factor of three.
• Credit card security agents can now call customers within seconds of a dubious transaction.
• With InfiniteInsight®, each credit card transaction is scored individually in real-time for its likelihood to be fraudulent.
• Reduced the number of alerts from 300k to around 30k per quarter by fine-tuning known fraud rules and discovering unknown fraud patterns.
• Immediate impact on the morale of fraud team members, who became much more effective at their job.