Elo Uses FICO Falcon Fraud Manager to Reduce Fraud by 30% Across Its Payment Network

Brazilian payment network provider wins FICO® Decisions Award for fraud management

FICO (NYSE: FICO)

Highlights:

• Elo has reduced fraud by 30 percent for card issuers using its payment network
• Elo has declined online fraudulent transactions on behalf of the issuers
• Elo now protects more than 30 issuers across the Brazilian market
• Elo won a 2022 FICO® Decisions Award for fraud management

Elo, one of the largest and most innovative payment providers in Brazil, has used FICO® Falcon® Fraud Manager to reduce fraud by 30 percent for card issuers using its payment network. The best-in-class cloud-based solution also managed to decline online fraudulent transactions and brute force attacks, a significant achievement as e-commerce boomed during the pandemic.

More information: https://www.fico.com/en/products/fico-falcon-fraud-manager

“When the pandemic arrived, FICO Falcon Fraud Manager helped us to continue monitoring transactions and provided our issuers with first-class security, despite changing customer behavior and uncertain times,” said Lori Grandin, fraud prevention head at Elo. “We have over four billion transactions passing through the network each year from 50 million cardholders, so shifting fraud patterns are a significant challenge.”

Prior to the implementation, Elo was experiencing higher fraud rates than the Brazilian market average. To continue its rapid expansion, it was critical to improve fraud detection to engender trust and drive acceptance of its offering.

“We were growing rapidly, and our CEO wanted to invest in a fraud system that could scale with international transactions and e-commerce,” said Grandin.

After a careful search, Elo decided to partner with FICO and chose to implement FICO® Falcon® Fraud Manager fraud detection in the cloud.

A determining factor in this decision was that the solution provided access to the FICO® Falcon® Intelligence Network, a unique and powerful consortium that uses transaction data from over 9,000 global banks to drive fraud-specific machine learning innovation.

Elo decided to deploy FICO® Falcon® Fraud Manager in the cloud, which offered a simpler and more agile implementation cycle. Additionally, operating in the cloud meant that FICO was responsible for updates, ensuring Elo would always have the best and most recent technology, as well as the ability to offer its clients ongoing analytic enhancements.

FICO’s fraud advisors worked with Elo and performed an in-depth review of Elo’s data, technology and operational processes. The team developed the initial rules, models, and best-in-class practices. The rollout brought first-rate fraud protection to all its issuers, which was especially important to smaller issuers that couldn’t otherwise afford world-class fraud protection.

“The implementation of the FICO solution has been a significant part of our success,” added Grandin. “It has helped us to develop a strong reputation as one of the most innovative payment providers in Brazil and to continue to grow to a point where we now protect more than 30 issuers on the market.”

“Elo is another FICO customer that has used technology to solve issues brought about by the pandemic,” said Nikhil Behl chief marketing officer at FICO. “They have introduced strict fraud control while balancing this with the user experience. The result has allowed them to continue to grow in a competitive market.”

For its achievements, Elo won a 2022 FICO® Decisions Award for fraud management.

“I was really impressed with the use of high-end analytics at the back-end to provide this service at Elo and the organisational structure with which they executed this,” said Sidhartha Dash, research director at Chartis and one of the FICO Decisions Awards judges. “The scale of the undertaking was not to be underestimated, especially during the conditions of the pandemic.”

About Elo

Elo is a Brazilian payment technology network founded in 2011 by Banco do Brasil, Bradesco, and Caixa Economica Federal as a domestic network to create a convenient, flexible, and agile payment product for Brazilians. The company offers financial and technology services and products, such as credit cards, debit cards, prepaid cards, 3DS authentication, tokenization, and NFC-enabled payments. Today, Elo cards are not only offered by its three founding shareholder banks but by more than 30 issuers.

About the FICO® Decisions Awards

The FICO Decisions Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2022 judges are:

• Sidhartha Dash, research director at Chartis
• Paul Deall, head of risk, mortgages at Westpac (previous winner)
• Senthil Erulappan, director, product engineering for merchant, risk and collections at FIS
• Armando Junior, general manager, risk and compliance at Dock (previous winner)
• Sheila Leverone, chief marketing officer at eDriving (previous winner)
• Sibulelo Ncamani, head of operational risk and governance at Absa Bank (previous winner)
• Graham Rand, operational researcher and editor of Impact
• Dinesh Suresh, head, digital builds for consumer secured lending at OCBC Bank (previous winner)

The winners of the FICO Decisions Awards were spotlighted at and won tickets to FICO® World 2022, the Decisions Conference, May 2022 in Orlando, Florida.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, manufacturing, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.

Learn more at www.fico.com.

FICO and Falcon are registered trademarks of Fair Isaac Corporation in the US and other countries.

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