First Chicago unit to use Falcon.

FCC National Bank, a subsidiary of First Chicago Corp., has signed a multiyear agreement to use HNC Software Inc.'s credit card fraud control system.

The system, called Falcon, combines client-server and host-based software and a neural network to evaluate credit card data and identify relationships and patterns that signal suspicious transactions. When a high-risk transaction is identified, Falcon signals an issuer's fraud analysts, allowing an on4ine response. HNC said the system has been effective in reducing fraud losses 20% to 30% over issuers' current fraud detection strategies.

San Diego-based HNC develops, sells, and supports systems based on computational intelligence for the payment systems, mortgage, and direct marketing industries.

FCC National Bank markets and supports the First Card Visa and MasterCards.

AT&T Universal Card, BankAmerica Corp., Chemical Banking Corp., and Household Credit Services also use the Falcon system.

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