Retail Decisions, a card-based transactions services business offering fraud prevention, is providing a national credit card fraud detection system for South Africa.
ABSA Bank, Nedcor Bank and Standard Bank of South Africa have signed on to use ReD?s PRISM system. Deployed at a central location by Retail Decisions, the PRISM software will enable card issuers and acquirers to use a single infrastructure and achieve economies of scale, given that fraud is not a competitive issue but rather one on which all financial organisations need to cooperate. PRISM uses a self-learning neural network fraud detection model using transaction data that will be provided by ABSA, Nedcor, Standard Bank, Diners Club and American Express, to monitor card transactions.
The system compares each transaction with historical account patterns and confirmed fraud activity. When the transaction is deemed to be suspicious by the neural network, or if the transaction matches one of the client bank?s pre-defined fraud detection criteria, it is routed to a fraud analyst at the client bank for review. The new service complements Retail Decisions? existing service, Card Clear, which is used by the leading banks and retailers in South Africa. Card transactions are screened against the Industry Negative Card File (INCF), a South African file of lost, stolen and delinquent cards. Retail Decisions will collate and update the INCF for the banks and retailers using information gleaned from the PRISM system. The INCF contains more than two million records from South African card issuers and over five million records from other international card issuers. Carl Clump, Chief Executive of ReD, said: ?We have consistently been looking to cross-market our whole range of services into new territories. The adoption of our PRISM service by key players in the South African banking industry is absolutely in line with this strategy.?
In the UK, ReD?s Hot Card File, contains millions of records of lost, stolen and delinquent cards. It is continually updated (on average by 30,000 new records each day) and is available to retailers 24 hours. See www.retaildecisions.com.
