FICO and Ethoca Team Up to Fight CNP Fraud

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Card issuers! When it comes to fighting CNP fraud, FICO and Ethoca have got your back.

This week Canada-based anti-fraud solutions provider Ethoca and analytic software titan FICO announced a partnership designed to help online merchants boost card acceptance, reduce disputes, and combat e-commerce fraud. Card issuers using FICO’s Falcon Fraud Manager will be able to link up with Ethoca’s Global Collaboration Network – including Ethoca Alerts – to provide further protection against suspicious transactions.

“Our partnership with Ethoca broadens our complement of fraud management solutions and expands the partnership between issuers and merchants,” FICO VP and GM for Fair Isaac Advisors, Robert Duque-Ribeiro said. “The first step in our partnership gives card-issuing banks access to the largest card issuer-merchant collaboration network in the world.”

The collaboration is geared to provide support throughout the “fraud lifecycle” of “protection, prevention, alerting, investigation, and recovery.” Connected to Ethoca’s network via a direct integration, card issuers will benefit from the ability of Falcon Fraud Manager’s advanced analytics to spot potential fraud, as well as Ethoca Alerts’s real-time notification when card-not-present fraud is confirmed by both cardholder and bank. The alerts enable merchants to act quickly to stop fulfillment of fraudulent orders and provide refunds to cardholders quicker than with the standard chargeback process.

“Our partnership with FICO is yet another example of Ethoca’s commitment to making collaboration a no-brainer for the world’s leading card issuers and merchants,” Ethoca EVP for Business Development, Trevor Clarke said. He added that Ethoca’s solution provided “a new layer of value – recovery” that is only possible when there is a strong collaboration between card issuers and merchants. Recovery is an especially key component when it comes to resolving issuer-liable fraud losses (i.e., 3D Secure transactions) and losses from low-value transactions. “Through the partnership,” Clarke added, “everyone in the payment lifecycle gets more value and enjoys a better experience – except the fraudster.”

Founded in 2006 and headquartered in Toronto, Ontario, Canada, Ethoca demonstrated its Ethoca Alerts technology at FinovateEurope 2016. The company announced that it would power fraud alerts for fellow Finovate alum ACI Worldwide back in August, and integrated its alerts technology into fraud detection platform, Kount Complete. Check out our Finovate Debut feature on Ethoca.

FICO made its FinDEVr debut at FinDEVr New York 2016 last spring, with a presentation titled, “Rapidly Deliver Contextually-Powered Stream Processing.” Headquartered in Silicon Valley and founded in 1956, FICO owns more than 165 patents and its solutions are used by businesses in more than 100 countries. Last June, the company acquired cybersecurity innovator, QuadMetrics, as part of a plan to offer “enterprise security scores” and launched Falcon Assurance Navigator to make it easier for universities to track federal grant spending. FICO launched its Score Simulator last spring and announced that former eBay and Oracle executive, Claus Moldt, would join FICO as Chief Information Officer.