Fair Isaac Adds Tool To Fight Internal Fraud

Fair Isaac Corp. today announced a strategic partnership with Memento Inc. to provide financial services institutions and credit unions with new tools to fight internal fraud. According to Concord, Mass.-based Memento, most serious fraud threats come from internal sources, and the company's services enable institutions to detect internal fraud at an early stage, thereby reducing losses after fraud is committed. Doug Claire, Fair Isaac vice president, fraud product management, said in a statement that fraudulent activity is increasingly found to originate inside of organizations, posing a dual threat to a financial-services firm's balance sheet and its reputation. "Most internal fraud starts small, and many schemes are perpetrated by long-term employees over a period of years," Mike Williams, Memento vice president of business development, tells CardLine. "To block these fraud schemes, internal fraud-fighting tools must detect unfamiliar patterns, policy violations and code-of-conduct violations at an early stage." Memento also serves as a clearinghouse of information on thousands of fraud schemes employees attempt. "New internal fraud schemes are attempted every day, and institutions need to block them before they become entrenched," Williams says. Fair Isaac is based in Minneapolis.