TSYS FRAUD MANAGEMENT SOLUTIONS - FICO

Solutions Overview

TSYS® FRAUD MANAGEMENT SOLUTIONS

Minimise costs associated Protect customers’ Improve
with fraud and risk trust and loyalty customer service

A Fully Integrated Real-Time End-to-End Solution
Dedicated to Reducing Your Losses to Fraud

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tsys fraud management solutions

In today’s risk-driven environment, it’s imperative for financial institutions
to be proactive when it comes to fraud and risk management. Companies
are always looking for ways to reduce their risk, mitigate fraud, and improve
collections. Partnering with the best in the industry, TSYS® provides the
tools required to minimise costs associated with fraud and risk.

Most payment card fraud now occurs on an amount lost. Additionally, financial institutions
international scale, and is perpetrated by well can suffer a level of reputational damage that
funded, technically proficient and organised dissuades current and prospective customers
criminal gangs. The fraud they perpetrate from using their cards, and threatens customer
affects the entire industry — banks, networks retention and opportunities for cross-selling
and processors. At TSYS, we take fraud to cardholders. These losses can be further
extremely seriously and continually invest in our compounded by financial penalties imposed
products and solutions to combat the ever- by payment schemes or regulatory bodies.
evolving practices.
Comprehensive and
Recent card fraud figures reveal that annual Integrated Solutions
payment card fraud increased by 21 percent TSYS’ Fraud Management solutions combine
across Europe in 2010, with losses totalling leading TSYS systems with world-class third-
more than €1 billion. In order to combat this party solutions to provide a fully integrated
increase, a number of industry-wide standards end-to-end solution designed to reduce your
have been implemented, including ICC/EMV losses to fraud.
Chip and PIN, which has been successful in
combating lost, stolen and counterfeit fraud, TSYS approach is based on a thorough
as well as 3D-Secure to help combat understanding of the nature of
e-commerce fraud. fraudulent activity that uses five key
processes as part of a comprehensive
The importance of effective fraud management is fraud management cycle.
underscored by the fact that once the true costs
of fraud — including administrative overheads, Underpinning the fraud management cycle
the cost of systems, fraud prevention personnel, is a realisation that an effective fraud strategy
disputes and chargebacks — are factored in, it must focus on each stage in the card account
is estimated to be around 2.5 times the gross lifecycle — overseeing the creation of the

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TSYS® Fraud Management Solutions | Solutions Overview

“Since converting to TSYS, permanent tsb has been able to develop

comprehensive fraud strategies, which have allowed us to very effectively and
proactively monitor and reduce card fraud. TSYS fraud tools have enabled us to
dramatically reduce our fraud exposure.”

Deirdre Fay, Manager, Financial Crime Prevention Unit, permanent tsb

Today’s fraudsters are professionally organised, well funded, technically
proficient and likely to be part of an international criminal fraternity. With
the increasingly technical sophistication of fraud attacks, advanced social
engineering and malware techniques resulting in large-scale account
data compromises, payment card fraud remains a significant threat to
the payments industry.

account, monitoring transactions in progress These innovative, leading-edge solutions draw
and after completion, analysing transaction on the experience of a world-class international
reporting, and examining chargebacks fraud operations and strategy team for
and recovery. customisable deployments. TSYS’ global
processing footprint ensures that client systems
TSYS employs multiple systems to control can be quickly adapted to take account of the
fraud on a number of levels. Some systems latest fraud threats.
help you manage customer reported stolen
or lost cards, including blocking authorisations, TSYS CardGuardSM
creating new accounts and issuing replacement • The core of TSYS’ fraud detection system
cards. Other processes monitor transactions • Blend customised rules, behavioural scoring
as they are taking place and facilitate real-
time alerts to cardholders of suspicious activity. and neural technologies
• Use the power of the system to build your
To deliver this holistic multi-point strategy, TSYS
deploys a range of scalable, customisable fraud own rules and strategies
systems that provide an easily-implemented • Intuitive rule building — no programming
solution for every type of card program and
budget. knowledge required
• More than 99 master file data elements
The TSYS Fraud Management Suite
At every step of the account lifecycle, from available for decisioning
initial credit evaluation to customer service, • Requeue feature — allowing previous
TSYS offer a suite of fully integrated prevention,
detection and management solutions that authorisation analysis on current rule
enable payment card issuers to effectively • Online champion/Challenger tool —
manage portfolio risk and protect against fraud.
priority projection
• Complete workflow case management
• Full suite of standard reports including rule,

priority and operator performance

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TSYS® Fraud Management Solutions | Solutions Overview

TSYS Authorisation Decision • CardGuard uses a 13-week history for
decisioning that rolls off after the 13-week
StrategySM I (ADS I) period. Determinator adds capability of
• Enables real-time decisioning at the capturing information about an authorisation
or other data into a card-level user area that
authorisation level based on criteria will not roll off in 13-weeks, adding even
associated with the authorisation more flexibility and capability to the
• Fraud authorisation rules only decisioning processes.
• Fully customisable for your portfolio
• Determinator consists of two
TSYS Authorisation Decision primary components:
1. A GUI desktop application for writing
StrategySM II (ADS II) and managing scripts, and
The functionality of ADS I but also including: 2. A runtime engine that is integrated
• Real-time scoring and prior into the TSYS application

authorisation criteria Adaptive 3D-Secure
• Intuitive rule building — no • Fraud protection for e-commerce

programming knowledge required transactions
• Online champion challenger tool — • Fully compliant with MasterCard®

priority projection SecureCodeTM and Verified by Visa
• Customisable transaction filter selections • Adaptive, risk-based authentication
• Flexible priority filters
technology offering multi-component
FICOTM Falcon® Fraud Manager risk assessment
• Customisable rules engine enabling
and Fraud Predictor configuration to match business
practices and risk tolerances
• FICOTM Fraud Predictor-powered neural
detection system SMS Alerts
• Alert customers within seconds of a possible
• Fully integrated within CardGuard,
ADS I and ADS II fraudulent transaction. Allow cardholders to
block and unblock their cards in real time
• Performs detection based on an unparalleled directly from their mobile phone simply by
pool of global transaction data texting key words
• Direct from TSYS systems to the cardholders
• Scores transactions for fraud in real time mobile phone
• Includes patented profiling technology • Reduce number of fraud cases
referred to agents
that “learns” cardholder and device • Lower declines — increase spending
behaviour patterns • Peace of mind for your cardholders
• Merchant profiling to identify high-
risk transactions Together, TSYS Fraud Management Solutions
address fraud holistically, across all channels
TSYS CardGuard DeterminatorSM and through all threat points. We believe
• Determinator is a TSYS decisioning tool they support the framework for zero tolerance
to fraud.
used when there is a need for client-specific
processing. It creates the ability to introduce In addition, TSYS offers a further range of
new behaviour into the system without intelligent information solutions to help
requiring a project, and eliminates the need maximise your growth and revenue by
for expensive and time consuming client- minimising fraud and risk. These comprise
specific hardcode changes to CardGuard, the following:
putting decisioning under the clients control. • TSYS AnalyticsSM — to retrieve data on fraud,
• Determinator is used across a number
of TSYS applications, including: ACE, transaction, authorisations and cardholder
Collections, Scores Databases, Messaging account-level history
services, and CardGuard/ADS. • TSYS Customer InsightSM — a call centre
• CardGuard historically allows rules and workflow-management GUI that enables
strategies to be written on 75 unique fields. automatic blocking and replacement of lost
With Determinator in play, the number of and stolen cards
fields increases to 730 — adding significantly
new flexibility and control over the rules
within CardGuard — making available every
field on all records used within CardGuard
(Account, Address, Customer, Authorisation,
Authorisation History (including non-
monetary), Statement, Memory Variables,
CardPrint and current Rule Fields).

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TSYS Fraud Management Lifecycle

PREVENT P R E V E N T:
Strategic planning and system setup to prevent fraud
ANALYSE DETECT from taking place

REPORT INVESTIGATE D E T E C T:
Using systems to detect fraudulent transactions and
stop them as they take place

INVESTIGATE:
Investigate all cases of detected and reported fraud
to gain understanding of how and where the fraud
was perpetrated.

R E P O R T:
Report on all fraudulent transactions in detail to allow
for analysis and trending

A N A LY S E :
Analyse all fraudulent transaction data to understand
patterns and trends, and use the insight to build
prevention strategies

• Credit CareSM and CentreSuite® — online When it comes to handling your critical risk
account servicing and management products related needs, TSYS is dedicated to providing
that provide a cardholder self-service suite the highest level of support available in the
with account alert notifications industry. Our team consists of accomplished,
industry experts who will work with you through
• FICO® TRIAD® Customer Managerand a variety of tailored program offerings. From
collections and recovery to disputes and fraud,
ProbeSM — combining behavioural scoring TSYS Managed Services provides you with
with sophisticated segmentation and analysis world-class support to help you aggressively
facilities to give you the ability to gain a manage risk. We use the latest technology to
deeper and richer understanding of your maximise productivity and mitigate the expense
customers and the significant events that help of managing your risk portfolio.
identify and manage your cardholders’ needs
TSYS Managed Services offers full-service fraud
Fighting Fraud monitoring and investigation with systems and
TSYS Managed Services offers end-to-end tools designed to detect and prevent fraudulent
customer service, collections, sales and account activity. Our fraud investigators can
back-office processes, including dispute, contact the cardholder directly, and if the fraud
chargeback and complete fraud operations is verified, immediate action can be taken to
and management providing support for more block the account. In addition, automated
than 30 million cardholders globally. In 2009, processes within our system can facilitate the
TSYS saved clients more than €250 million transfer of account history and transactions.
in avoided fraud losses, with clients realising
around 35 to 40 percent lower fraud losses
than the industry average.

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TSYS® Fraud Management Solutions | Solutions Overview

TSYS Fraud Management Key Benefits:

Key Features: • Maximise growth and revenue by minimising
costs associated with fraud and risk
• Comprehensive end-to-end fraud solution
• Protect customers’ trust and loyalty through
• True, real-time decisioning of transactions based enhanced security, leaving them confident
on individual client-defined and regional rules that their cards are continuously monitored
for suspicious transactions
• Best-in-class platforms and detection systems
that operate in real time • Preserve profitability by preventing attrition

• Full authorisation, dispute, chargeback and • Encourage increased card usage
collections management services
• Quickly resolve cases and reduce chargebacks
• Innovative, leading-edge solutions with by identifying potential fraud, leading to lower
continual investment and enhancement net fraud losses

• World-class, internationally-based fraud • Reduced operational costs through the use
operations and strategy team of our experts, leaving you to concentrate
on your core business
• Global client base ensures latest fraud
intelligence and fast response to new trends • Improved customer service

• Advanced analytics and business intelligence
to help deliver data-driven risk analyses

• Fraud prevention strategy planning and support
via client best practice guides and consultancy

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experience you can count on

TSYS is one of the world’s largest companies for outsourced payment services,
offering a broad range of issuer- and acquirer-processing technologies that support
consumer-finance, credit, debit, healthcare, loyalty and prepaid services for financial
institutions and retail companies in the Americas, EMEA and Asia-Pacific regions.

TSYS Fraud Management Solutions for Nationwide Building Society

In August 2007, the largest building society in the world In order to achieve these spectacular results, Nationwide
announced a multi-year contract with TSYS to provide has deployed a range of TSYS’ fraud management
full processing and fraud management solutions along solutions, including, TSYS CardGuard, Secure Card
with a fully integrated managed service offering across Delivery, FAST (Fraud Authorisation Strategy Tables),
their credit card business, including the building of a RTD (Real Time Decisioning), ADS I and ADS II, and FICO
customised 300-seat contact centre site in Coventry, UK, Falcon Fraud Predictor with Merchant Profiles. All of these
that went live in March 2008. are supported by TSYS Management Information Systems
and TSYS Analytics® data warehousing functionalities.
Pete Corrie, Head of Financial Crime said, “Nationwide Nationwide now reports the lowest levels of fraud losses
places great importance on finding new ways to further within their peer group, as well as the lowest of the high
improve the service we can provide to our customers. By street financial service organisations. Nationwide has
joining forces with TSYS we are able to offer enhanced reduced their loss per card by two-thirds from August
products and processes while providing greater member 2008 to July 2010.
value through annual cost savings.”
Nationwide Building Society continue to work to reduce
The level of fraud prevention has significantly improved their levels of fraud, protecting their members and
following Nationwide’s migration to TSYS. The false/ cardholders, whilst at the same time ensuring the
positive ratio on fraud declines was less than 8:1 which highest possible levels of customer service, expectation
meant that the lower fraud level has been achieved, and experience.
without negatively affecting customer experience. This
is an outstanding achievement in reducing bottom line ACHIEVEMENTS AT THE CARD & PAYMENTS AWARDS
losses as well as improving cardholder security. 2011 – Winner – Most Responsible Credit Card Lending Practices
2011 – Finalist – Best Security or Anti Fraud Development
2010 – Winner – Most Responsible Credit Card Lending Practices
2010 – Winner – Best Achievement in Customer Service
2009 – Winner – Most Responsible Credit Card Lending Practices
2008 – Winner – Most Responsible Credit Card Lending Practices
2008 – Finalist – Best Online Initiative

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Fulford Moor House • York • YO10 4EY • United Kingdom • [email protected] • + 44 (0) 1904 562 000 www.tsys.com

About TSYS

TSYS (NYSE: TSS) is reshaping a new era in digital commerce, connecting consumers, merchants,
financial institutions, businesses and governments. Through unmatched customer service and industry
insight, TSYS creates a better experience for buyers and sellers globally, supporting cross-border payments
in more than 85 countries. Offering services in credit, debit, prepaid, mobile, chip, healthcare, installments,
money transfer and more, TSYS makes it possible for those in the global marketplace to conduct safe and
secure payment transactions with trust and convenience.

TSYS’ global headquarters are located in Columbus, Georgia, with other local offices spread across the
Americas, EMEA and Asia-Pacific. TSYS serves approximately 400 clients in 85 countries, including
relationships with more than half of the Top 20 international banks.

The people of TSYS are respected around the world for the spirit of true partnership they invest in every
relationship and business decision. By the passion they bring to the world of payments, the people of TSYS
are known as good people to do business with. Get to know us at tsys.com, or contact us at or contact us at
[email protected] or +44 (0) 1904 562 000 to learn more about how we can serve as the trusted partner in
your payment strategies.

© 2011 Total System Services, Inc.®. All rights reserved worldwide. Total System Services, Inc., and TSYS® are federally registered service marks of Total System Services, Inc., in the United States. Total System Services,
Inc., and its affiliates own a number of service marks that are registered in the United States and in other countries. All other products and company names are trademarks of their respective companies. (03/11)