FICO fights financial crime with Falcon X
FICO fights financial crime with Falcon X
Finovate special: FICO has unveiled Falcon X at FinovateFall, described as a “unified environment for the detection and investigation of both fraud and financial crimes” by the vendor. The solution is hosted in the Amazon cloud, Amazon Web Services (AWS).
According to FICO, Falcon X “delivers groundbreaking artificial intelligence (AI) and machine learning (ML) technology aimed at preventing new forms of fraud and financial crime that are enabled by the rapid adoption of real-time payments”.
The appeal of the new solution is in bringing together fraud detection and anti-money laundering (AML) processes, the company says, as this convergence will result in a “significant cost savings opportunity”. FICO estimates an 80% overlap in the data processing, systems maintenance, and ongoing administration of legacy systems needed to support these functions independently.
Jason Keegan, who oversees the fraud line of business for FICO, says: “Criminals have exploited the rigid infrastructure that underpins our global financial system. This has allowed them to not only commit theft, but also finance drug trafficking, human smuggling, and terrorist activity. With Falcon X, we set out to help institutions detect and prevent criminal activity before the real-time transfer occurs.”
TJ Horan, FICO’s VP of fraud and compliance products, adds: “We’re bringing to bear the orchestration of purpose-built ML models, contextual data, and expert workflows, giving fraud and compliance teams unprecedented flexibility.”
As part of Falcon X solution, FICO has also introduced the Financial Crimes Studio with InstantML, which facilitates building and deploying real-time financial crime models. It uses open source ML libraries such as R, Python, and H2O.
The original Falcon solution was launched 25 years ago and, in the words of Dr Scott Zoldi, FICO’s chief analytics officer, “changed the industry”. Since then, it has gained 95 patents for fraud-specific ML algorithms and protects 2.6+ billion payment accounts worldwide.
