Fiserv deploys new products to prevent financial crime

255 Fiserv Drive, Brookfield
Innovations: Check Fraud Manager, Payment Fraud Manager, Customer Risk Manager and AML Risk Manager

Brookfield-based Fiserv Inc., a leading global financial services technology firm, has introduced four new solutions for its Financial Crime Risk Management platform.

The platform, which is meant to be used by financial institutions, aims to reduce the instances of financial crime – an urgent concern for banks.

Fiserv’s newest offerings include: Check Fraud Manager, Payment Fraud Manager, Customer Risk Manager and AML Risk Manager.

The company previously offered Anti-Money Laundering Software (AML) and FraudLink/FraudGuard, a check fraud detection software. The Customer Risk Manager and Payment Fraud Manager are brand new offerings, while the AML and Check Fraud Manager have received significant upgrades.

Da Silva

The Payment Fraud Manager product was developed to address both wire fraud and Automated Clearing House fraud, which Fiserv says accounts for more than $1.2 billion in annual losses in the U.S., and growing. It uses advanced predictive analytics and scorecards to help financial institutions target high-risk transactions.

The Customer Risk Manager focuses on an emerging threat, account takeover fraud, which has an impact at the customer level. It offers customer-level profiling and risk scores to alert banks of changes in a customer’s risk profile for additional monitoring before fraud occurs.

Among the advantages of the solutions are the ability to stop transactions in real-time both from the teller window and via remote deposit capture, which can reduce fraud by up to 75 percent, said Mannie Da Silva, senior director of fraud product management.

“Banks are increasingly allowing customers to deposit their checks through their mobile phones,” Da Silva said.“This is a great feature of mobile banking and is catching on quickly. But fraudsters are also taking advantage of this new feature. For example, they are submitting the same item to multiple banks or accounts at the same time before the banks can run it through the clearing process. By operating in real-time, we allow banks to stop the fraud that is caused by things like duplicate presentment fraud.”

Containing all of the risk solutions in the FCRM platform also provides added ease of use for banks, he said. The platform gives users the capability to create their own business rules and models for the risk products to remain flexible in the face of new fraud tactics.

“We know that users need the capability to write flash fraud or risk rules to stop unforeseen risks that sprout up,” Da Silva said. “We give the ability to respond now, which is something they have wanted for a long time.”

In addition, banks can use Fiserv’s predictive fraud and risk models, based on actual bank fraud data trends. The platform also automates banks’ workflow on check fraud detection, improving efficiency, and provides both dashboard and Suspicious Activity Reporting.

Fiserv spent several years developing the FCRM platform, particularly the real-time technology, and deployed the offerings in March.

“The financial services industry is in need of breakthrough flexibility and quicker solutions to more effectively combat financial crimes,” said Tim Grace, senior vice president and general manager, Financial Crime Risk Management. “Fiserv has developed these new solutions to integrate best-in-class predictive analytics with the agility that financial institutions require to respond in real-time to changes in behavioral patterns. Together, these new capabilities and solutions help improve loss rates and operational efficiency, which can positively impact the bottom line and increase customer satisfaction.”

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