US-based Fair Isaac is teaming with US electronic payments network Nyce to extend its account-profiling technology to ATMs and point-of-sale terminals in order to determine the fraud risk associated with individual devices.
Fair Isaac says the new system will use data from Nyce's network of 280,000 ATMs and 1.5 million POS locations in order identify typical, non-fraud transaction patterns for each terminal and create device profiles that enable detection of abnormal, potentially fraudulent transaction patterns.
The custom-built application - which will also include fraud data from users of Fair Isaac's Falcon technology - will enable Nyce participants to detect and stop PIN-based fraud in real time, during the authorisation process, by determining the risk associated with individual devices.
Doug Clare, VP of networks, Fair Isaac, says: "This new approach will deliver more than just a powerful fraud detection tool. We believe it will transform the debit network industry's approach to fraud detection and management."
The new application will also include the vendor's CardAlert Fraud Manager, which identifies and reports counterfeit payment cards to issuers.