First Data to Employ HNC's eFalcon Fraud Detector
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E-commerce and payment services company First Data Corp. signed an agreement allowing it to incorporate HNC Software Inc.'s eFalcon real-time Internet fraud detection service into its suite of e-commerce offerings.
The move will assist its Internet clients in lowering credit card fraud losses, First Data said. Financial arrangements were not disclosed.
First Data is marketing the fraud prevention service, under the name FraudTrap, to its financial institution clients and technology partners, which in turn can re-brand it as a value-added offering to their online merchants.
Using neural network and scoring-based technology to indicate the probability that a transaction is fraudulent, the service enables merchants to distinguish in real-time between legitimate and fraudulent online shopping transactions.
FraudTrap is the first component in what will be a suite of First Data Internet fraud tools, with the ultimate goal of guaranteeing payments, said John Duncan, executive vice president and general manager of Internet Commerce at First Data.
First Data provides merchant processing services to more than 2 million brick-and mortar locations and over 95,000 online merchants. In 1999, First Data processed more than 6 billion credit, debit and stored value card merchant transactions representing nearly $330 billion in sales volume.
HNC markets predictive software solutions for service industries, including financial, insurance, telecommunications and e-commerce. By accurately predicting customer behaviors, clients can create initiatives to mitigate risk and attrition; improve customer service; develop marketing programs to enhance profitability, and detect fraudulent customer transactions.