HNC Software Inc. said Sumitomo Credit, the biggest Visa card issuer in Japan, has signed a seven-year agreement to use HNC's Falcon fraud-detection system.

Falcon monitors more than 150 million cards worldwide.

Although Sumitomo Bank processes Visa transactions for all banks in Japan, it will apply the Falcon neural network system only to its own card- issuing business.

The system is being customized for use in Japan, and HNC will get an undisclosed monthly fee based on transaction volumes.

Card fraud is increasing in Japan. The International Association of Credit Card Investigators estimates that Japanese institutions lose the equivalent of $250 million a year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.