HNC Software Inc. said it is marketing a bankruptcy- protection system that monitors spending patterns to warn card issuers about potential problems.

Profitmax Bankruptcy uses neural networks and HNC's patented cardholder- profiling technology to analyze each account and predict the likelihood of bankruptcy.

HNC said issuers may use custom bankruptcy models it built or join its bankruptcy consortium, which will give them access to a pool of bankruptcy data.

"With bankruptcy soaring in the United States, issuers need a better way to predict who's going to go bankrupt," said Krishna Gopinathan, HNC vice president of payment systems.

HNC also introduced a system to fight fraud. Fraud Sentry uses neural networks to detect fraud in payment-card applications and on new accounts.

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