Background
A national bank partners with retailers to provide private label credit cards to their customers. Customers can apply at the point-of-sale in the store, online before shopping or during checkout, or over the phone. The bank’s Fraud Director observes a spike in first payment defaults (FPDs) on newly issued cards from several retail partners. The utilization on these FPDs is near 100% and since first payment dates are 45-60 days after the customer is approved, the Fraud Director is concerned these new FPDs are the early signs of a fraud attack which could result in huge unexpected losses.
The Process
The bank transfers a account-level data file with no PII data included. When the data arrives it automatically triggers Fraud Attack Manager.
- Within seconds results are provided showing non- FPD distributions and FPD distributions for every characteristic and segmentation provided.
- Results are ranked based on a Bad-Good Multiplier and also show cumulative distributions, making it extremely easy for the Fraud Director to identify which characteristics and segments are missing the proper controls to protect against this fraud attack and driving the FPD spike.