The U.S. Patent and Trademark Office has awarded FICO eight new patents, including one for a new system of predicting, detecting and managing financial transaction device fraud using mass compromise analytics that could determine which cards banks should reissue after a data breach.
The system detects suspected compromise events, defines clusters of potential compromised credit cards, and enables specialized analysis or monitoring on a cluster-by-cluster basis, FICO said in a press release. Using this data, card issuers do not need to cancel or reissue entire pools of compromised cards unless the cluster of potential cards shows indications of being used fraudulently.
This technology will bolster FICO’s fraud detection and prevention suite, FICO Falcon Fraud Manager, and could save card issuers millions of dollars, the company said.
New patents were granted to FICO for an algorithm used to explain the primary factors influencing a credit score based on a rich data feed. FICO’s myFICO website uses this technology to offer consumers and clients in the financial services industry insight into how consumer credit data are used and evaluated when calculating a FICO score.
Other patents involve an enhancement to the FICO Credit Capacity Index that models the impact of future actions on a consumer’s subsequent credit risk, and a new system that delivers enhanced identity-fraud protection as part of FICO Falcon Fraud Manager for credit card issuers, credit-granting retailers, telecommunication carriers, full-service banks, and other credit grantors and their customers.
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