UBS reduced fraud by 84 percent with AI

UBS Card Center, which processes roughly 25 percent of all credit cards in Switzerland, has won the Security Innovation of the Year award at the Retail Banker International Awards, presented in London. UBS Card Center’s fraud team used the the latest artificial intelligence and machine learning capabilities in the FICO® Falcon® Platform to stop 84 percent more fraudulent transactions last year than in 2015.

The need to optimise costs in the face of fierce competition meant UBS Card Center had to keep fraud write-offs to the very minimum. They were facing new fraud attack volumes but needed to uphold the highest standards for customer experience and satisfaction. This required the use of machine learning to minimise consumer interuptions while investigating more potential cases of fraud, all without adding staff.

To tackle this multi-dimensional problem, fraud experts at UBS Card Center used the free-form rule writing within the FICO Falcon Platform to create complex rules that deployed multiple AI techniques, including adaptive analytics. Adaptive analytics use the results of recent fraud investigations to automatically fine-tune the underlying neural networks in order to accurately reflect the latest fraud landscape. These custom rules, combined with the advanced analytics, were the only way to improve false-positives and fraud detection rates.

Using FICO AI and machine learning, UBS Card Center managed to investigate and resolve 42 percent more fraud alerts without bringing in new staff resources.

“We are combining our deep expertise in analysing fraud trends and the latest breakthroughs in AI and machine learning from FICO to keep losses and false-positives low and customer satisfaction high,” said Marcel Drescher, Head of Fraud Services, UBS Card Center. “We are gratified by this industry award recognising our success in stopping fraud.”

“UBS Card Center has reduced the amount of fraud write-offs per compromised card, stopped more fraudulent transactions and mitigated false-positive rates using the FICO Falcon Platform,” said Douglas Blakey, Group Editor Consumer Finance at Timetric Financial Services, which hosts the awards.

“UBS Card Center have taken an aggressive stance against fraud,” said Jens Dauner, senior director for FICO in the DACH region. “Their impressive results show it is possible to both crack down on fraud and improve the customer experience using advanced analytics. We are proud to count them as our customers.”

Powered by more than 100 patents in fraud-specific machine learning and AI, the FICO® Falcon® Platform helps financial institutions detect and prevent fraud seamlessly, in real time, all while improving the bottom line and advancing the consumer experience. The FICO Falcon Platform is the world’s leading payments fraud solution and protects more than 2.6 billion payment cards worldwide.