SAS Improves Fraud Protection for HSBC

SAS Institute
2007-11-02 15:42 879

Real-Time Protection Against Card Fraud Launches to Global Banking Community

HONG KONG, Nov. 1 /Xinhua-PRNewswire/ -- SAS today launches SAS Fraud Management a new real-time, card fraud detection system based on its enterprise intelligence platform. The system was developed together with HSBC and is currently implemented in the US, conducting fraud checks on HSBC’s US credit card transactions in real time. Designed from the outset to handle credit and debit cards on a global scale, SAS believes that it is the most complete fraud detection system available today.

Using SAS Fraud Management, HSBC has improved fraud detection, false positive rates and fraud case handling efficiencies. The software actively reduces losses that cost the industry $4.84 billion (Note 1) last year.

SAS Fraud Management reviews HSBC’s card transactions, alongside other changes in customer behaviour, and delivers a real-time decision to proceed with the transaction or seek customer clarification regarding its authenticity.

Specific benefits achieved by HSBC in the first three months of implementation include:

-- An 87 percent increase in the number of data items processed,

including card transactions and customer information, with a

corresponding reduction of 12 percent in the mainframe processing

overhead. This has resulted in a 53 percent decrease in the

mainframe processing cost per data item.

-- A 30 percent decrease in the computing resource cost of processing

card transactions flagged as potentially fraudulent.

-- A 10 percent increase in efficiency by agents investigating

potentially fraudulent cases when compared to the proprietary case

management system.

-- Reduced IT support costs following the elimination of three software


Derek Wylde, Head of Group Fraud Risk, HSBC, said, “Our success with this partnership and with SAS Fraud Management shows that SAS understands and shares in HSBC’s long-term goals.”

“SAS is proud to have produced, alongside HSBC, a system that will truly change the landscape of transaction fraud detection across the financial services industry,” said Jim Goodnight, CEO of SAS.

Given its success, SAS Fraud Management is now being implemented in the UK and Asia. Within the next few years, SAS Fraud Management will be used to assist HSBC in protecting transactions for more than 100 million credit or debit cards in more than 30 countries worldwide.

Note 1: The Nilson Report - July 2007

Source: SAS Institute
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