Payment fraud is on the rise: Entercard catches 8 out of 10, before it comes to the customer’s attention

Published April 3, 2019

Fraud is an increasing issue and the methods are more and more advanced. In Scandinavia, reported credit card fraud reached over 600 million SEK in 2017, according to the analytics company FICO. The main reason is a significant increase in card not present (CNP) fraud, where fraudsters use card and account information to shop online. CEO in Entercard Group AB says the fight against fraud is their top priority.

“Our mission is to increase control and reduce the negative consequences of fraud on our customers, our brands, the schemes and the company. Fraud funds global organised crime and terrorism and is closely tied with cybercrime. Fraud protection is therefore an act of good citizenship,” says Yannick Leclerc, Head of Fraud Strategy & Analytics in Entercard Group.

Customer value

Since 2013, Entercard has taken the lead in its use of the latest analytic innovations from FICO – the world’s leader in payments fraud protections. The results have been impressive:

  • More than 8 out of 10 fraud attempts are exposed before the customer discovers the event. Customers are informed about the fraud by Entercard.
  • 60 per cent reduction in fraud net losses basis points since the new software was implemented.
  • More than 70 per cent of our customers reply to Entercard’s messages asking them to confirm whether the transaction is genuine/fraud.

“Entercard has a high Net Promoter Score compared to peers in the industry because of using best-in-class fraud protection, case management and automated customer communication tools from FICO,” says Leclerc.

“It’s no longer enough simply to detect and prevent fraud — the customer experience is a critical factor. We are seeing more Scandinavian lenders looking to improve this part of the fraud process. Entercard have taken the lead in this area,” said Dylan Jones, who oversees FICO’s work in the Nordics.

Industry leading

Entercard is one of Scandinavia’s leading credit market companies with more than 1,7 million customers in Scandinavia. The company states that its leading position in the credit market commits:

“Being a leading player in the credit market implies setting the precedence for the entire industry. We ensure always delivering the industry’s most secure solutions and hope to inspire others to do the same,” said Leclerc.

Lately, growth in so-called push-payment fraud is increasing heavily. Criminals trick consumers into authorizing a payment of a fake invoice or unwittingly sending an SMS that triggers a payment.

New analytics

FICO Falcon Fraud Manager 6, the world’s leading payments fraud manager system, is based on more than 80 patents related to fraud analytics and monitors more than 2.6 billion payment accounts worldwide. According to Jones in FICO the demand for top fraud management systems among banks and card issuers is increasing.

“Banks and card issuers must be more sophisticated than the fraudsters and use the latest analytic innovations to stop them. Entercard has taken the lead in this area since 2013, which their customers are now benefiting from,” said Jones.

Besides using the latest technology, Entercard is also part of FICO’s global community. More than 9 000 banks worldwide contribute in creating the world’s largest source of fraud payments data, which enables Entercard to benefit from the patterns detected worldwide. This has led to improvements in the speed and increase in customer satisfaction.