Fair Isaac Corporation · NYSE:FICO
Fair Isaac — Investor Presentation (May 2013)
18 slides from Fair Isaac's investor presentation, May 2013
Slide 1: FICO Entity Resolution and Social Network Analysis
FICO Entity Resolution and Social Network Analysis Fraud, Security and Compliance May, 2013 Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent. 1 © 2012 Fair Isaac Corporation.
Slide 2: Agenda
Agenda • Industry Drivers for Fraud, Security and Compliance • Entity Resolution and Social Network Analysis • Why is it effective? • Reactive & Proactive Approaches • Use Case Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Co
Slide 3: Industry Drivers for Fraud, Security and Compliance
Industry Drivers for Fraud, Security and Compliance Increasing Transaction volume, mobile access, and regulatory Sophistication of pressure are complicating the fraud and security Fraud Schemes landscape New Regulatory FFEIC, tougher AML penalties, and renewed regulatory Pressures scrutiny have bank
Slide 4: FICO and Infoglide Combination Enables a Stronger Response to Enterprise Fraud and Financial Crimes
FICO and Infoglide Combination Enables a Stronger Response to Enterprise Fraud and Financial Crimes Detecting and Fraud Compliance investigating complex fraud schemes requires a deeper understanding of the relationship between actors, events, and Security entities. Enterprise Fraud and Financial Cri
Slide 5: FICO Differentiation: Bringing Stronger Quantitative Assessment to Social Network Analytics
FICO Differentiation: Bringing Stronger Quantitative Assessment to Social Network Analytics • Discipline of Social Link Analysis has focused more on “linking” than on Social Predictive Analytics Decision Mgmt Network “analysis” Analysis • Link visualization is a powerful investigative tool… • But it
Slide 6: What is Social Network Analysis?
Social Network Analysis What is, Social Network Analysis enables the correlation of people, entities, and events Social Network and the analysis of the resulting networks Analysis? for risk or opportunity. The detection or prevention of fraud is a primary use case. 1. Accesses data within and outsid
Slide 7: Why is Social Network Analysis Effective?
Why is Social Network Analysis Effective? Fraud Rings share/recycle identity information during the account creation process, which can be used to construct and visualize fraud rings. 7 © 2012 Fair Isaac Corporation. Confidential.
Slide 8: SNA Scenario
SNA Scenario • Suzie Smith looks like a normal customer • Regularly pays off her credit card • Services her loan • Has a modest amount of $$ in her checking account • Has valid home address and home telephone Checking—S Smith Credit Card—S Smith CO - Loan— S. Smith Suzie Smith Loan—S. Smith 12395 Ce
Slide 9: SNA Scenario (Part 2)
SNA Scenario (Part 2) • Suzie’s network reveals a much different picture Checking—S Smith Credit Card— S Smith Suzie Smith Checking—J. Benton CO Loan— Loan—S. Smith J. Benton John Benton Ph: 440-525-6565 12395 Cedar Road, Apt 225 Checking—J Wilson Jack Wilson SIU—Loan— J. Benton Ph: 216-525-6565 620
Slide 10: FICO Identity Resolution Engine (IRE) (formerly Infoglide)
FICO® Identity Resolution Engine (IRE) (formerly Infoglide) 1 2 3 4 Search Match / Resolve Link Act Federated Similarity Matching & Uncover links Leverage results Search Relationship in various ways Intelligence Social Risk Scoring and Triage Alert Processing Social Link Visualiza8on IRE automates I
Slide 11: Why is Entity Resolution So Important?
Why is Entity Resolution So Important? • Entity Resolution bridges the organizational and geographical siloes • Better visibility for Risk, but also can be used to improve marketing, customer service, and overall strategy Individual » John » John » John » John Smith Smith Smith Smith Jonathan Smith
Slide 12: Entity Resolution and Social Link Analysis can be Used Proactively and Reactively
Entity Resolution and Social Link Analysis can be Used Proactively and Reactively Investigation FICO Fraud Reactive Detection Known Suspect Targeted Search Specific Output Proactive Fraud Detection FICO case review Broad Search Analytically New Suspects Prioritized Results 12 © 2012 Fair Isaac Corpo
Slide 13: Federated Search and Entity Resolution for Investigation and Compliance
Federated Search and Entity Resolution for Investigation and Compliance » Search siloed data » Match and link across disparate data » Real time and batch FICO mode IRE 13 © 2012 Fair Isaac Corporation. Confidential.
Slide 14: Top Down Use Case—Bust-Out Fraud
Top Down Use Case—Bust-Out Fraud Organized Steal/Acquire Create Valid Clear out Fraudsters and Valid Identity Accounts and Accounts and Insiders Information Credit Lines Disappear • Banks have a difficult time discovering bust-out fraud using traditional analytical and rules-based systems because: •
Slide 15: Proactive Fraud Detection with SNA
Proactive Fraud Detection with SNA 1. Ingest data 2. Resolve entities and build relationships 3. Analyze relationships 4. Output Social Risk Alerts Visualize Scoring and Triage 15 © 2012 Fair Isaac Corporation. Confidential.
Slide 16: Industry Use Cases
Industry Use Cases Insurance and Healthcare Banking • Claims Fraud • Sleeper/Bust-out Fraud • Insider Fraud • Insider Fraud • Provider Fraud • Application Fraud • Compliance Other/Miscellaneous • Organized Retail Crime • Benefits Abuse • Lottery Fraud • Law Enforcement • Employee Screening 16 © 2012
Slide 17: Global Bank Compliance Use Case
Compliance Use Case Entity Resolution and Link Analysis Challenges » Needed a compliance solution to investigate and search Global Bank for entity matches and perform link analysis across global enterprise » Massive amount of data » 100’s of millions of identities » 15+ data repositories across 2 co
Slide 18: Thank You
Thank You www.fico.com/infoglide Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent. 18 © 2012 Fair Isaac Corporation.