Ethoca, a provider of collaboration-based technology to prevent card frauds, has teamed up with analytic software firm FICO to improve fraud management capabilities for the card issuers.
Now, card issuers who use FICO Falcon Fraud Manager will be able to easily connect to Ethoca’s Global Collaboration Network to maximise the recovery of card not present (CNP) fraud losses and avoid the expensive, useless chargeback process.
As per the agreement, Ethoca’s flagship service, Ethoca Alerts, will work closely with FICO’s Falcon software to deliver a complete CNP fraud solution that spans every stage of the fraud lifecycle such as protection, prevention, alerting, investigation and recovery.
Leveraging the strength of the collaboration, FICO will offer a range of simple connection options so card issuers can easily participate in Ethoca’s Global Collaboration Network. Additionally, issuers who depend on FICO Falcon Fraud Manager can choose to take part in Ethoca’s network through direct integration.
While Falcon uses advanced analytics to assess and score card transactions for potential fraud, Ethoca Alerts come into effect once CNP fraud has been confirmed between a cardholder and their bank.
Cases of confirmed fraud reported by card issuers are marked in Falcon and fraudulent CNP transactions are advised to Ethoca for immediate distribution as alerts to over 5,000 merchant customers across the world, covering more than 194,000 merchant descriptors.
Upon receiving the alerts, Ethoca’s merchants instantly stops the fulfilment of fraudulent orders and issue cardholders a refund. This faster, more efficient process can be completed in few hours instead of the weeks of delay typical of the chargeback process, which prevents criminals from monetising their crimes.
FICO said that card issuers can now eliminate operational expenses associated with chargebacks and speed the recovery of dispute and fraud losses, while ensuring an improved experience for cardholders.