NICE Actimize, a NICE Systems(NASDAQ:NICE) business and the largest and broadest provider of financial crime, risk and compliance solutions for the financial services industry, is profiled in the 2015 CEB TowerGroup analysts’ “Managing Card Fraud in a Complex Payments Environment,” Card Fraud Management Systems Market Update. NICE Actimize’s Card Fraud solutions were cited for providing an enhanced layer of protection for mobile wallets and pre-paid cards and a full view of monetary and non-monetary transactions. NICE Actimize provides a full range of anti-fraud solutions to both financial services organizations generally and to the card industry specifically, according to the CEB report.
“In researching our card fraud management report, we discovered that investment in card fraud solutions was substantially lagging behind growth in card use,” explained CEB TowerGroup Research Director and author of the report, Brian Riley. “In fact, despite the new digital environment, many banks haven’t updated their card fraud solutions since 2006. Now is the time for financial institutions to prepare and to strengthen fraud controls in the digital channels, as transactions shift to mobile and online,” said Riley.
The CEB report notes that NICE Actimize’s suite of fraud management solutions takes a holistic approach to fraud prevention, evaluating the full context of customer transactions, including both monetary and non-monetary events (such as card provisioning, service transactions, and enrolments), and provides risk assessments at the customer level.
“With the convergence of card and mobile in the complex card payment landscape, it is critical that financial institutions adapt and become agile across all the newest payment channels,” said Joe Friscia, President, NICE Actimize. “We are experienced across the entire enterprise fraud environment and bring that depth to the latest payment schemes, including digital wallets and pre-paid cards.”
The CEB report added, “While card platforms are a natural channel to support the quick deployment of mobile payment capabilities, they also create new vulnerabilities to capture transaction data by tricking customers into revealing confidential information or test control capabilities. Known as ‘data on the move’ this form of information capture accounted for the second highest form of data breach in 2014.”
Addressing other card industry trends, the CEB report states that the upcoming conversion to EMV smart cards in the United States will decrease fraud and shift fraudsters to other fraud types, as the industry has seen in Australia, Canada and Europe. Card Not Present (CNP) fraud currently accounts for nearly one-third of payment card fraud in the United States, and this share is likely to grow as payments shift to online and mobile channels, according to CEB TowerGroup.
The Actimize Integrated Fraud Management (IFM) suite enables financial institutions to protect themselves and their customers from fraud across multiple payment channels including debit and pre-paid card, mobile and online banking, electronic payments such as wires and ACH, check fraud and contact center fraud. Institutions realize cross-channel, real-time fraud detection and prevention capability to reduce fraud losses, improve efficiency, and provide exceptional customer service.