8th February 2019

EnterCard doubles fraud detection and cuts fraud loss rate using FICO machine learning

EnterCard (owned by Barclays and Swedbank) has sharply reduced its fraud rate and generated massive savings using the FICO® Falcon® Platform to combat payments fraud and communicate with its 1.7 million customers in Denmark, Norway and Sweden. As one of the first companies to use the platform’s machine-learning adaptive analytics capability, EnterCard is able to rapidly respond to shifts in fraud patterns, and has reduced net losses in basis points by 60 per cent.

For its achievements, EnterCard won a 2018 FICO® Decisions Award for Fraud Control. “EnterCard’s story is a great example of deploying truly advanced analytics to solve the problem of fraud, which is moving faster than most businesses can match,” said Julie Conroy, research director for Aite Group’s Retail Banking & Payments practice and one of the FICO Decisions Awards judges. “Their remarkable results show the power of machine learning and AI in detecting fraud.”

“Safety for our customers is a key asset for EnterCard. We have improved our fraud program and the customer journey through real-time detection and resolution,” said Freddy Syversen, CEO of EnterCard Group. “By using the FICO Fraud Resolution Manager, we can instantly contact customers, validate transactions and improve their experience. Our partnership with FICO has paid off in numerous ways for our business and our customers.”

EnterCard implemented the FICO® Falcon® Platform with adaptive analytics and machine learning in-house for all countries, and moved to the cloud-based solution in 2017. This solution includes real-time fraud detection based on AI models, and automates communication with customers through two-way SMS and email. In addition to identifying fraud faster and immediately working with customers to validate or block a transaction, EnterCard saw material cost savings for the block & reissue process.