Fair Isaac Corporation ( FICO ), a premier provider of predictive analytics and decision-management solutions, recently launched a software solution for real-time detection of fraud, money laundering and other forms of organized crime. Titled FICO Identity Resolution Engine 3.6, the software is an updated version of the technology acquired by the company when it bought identity resolution services provider, Infoglide Software Corporation in April 2013.
With sophisticated crime spreading its tentacles into the financial sector, FICO Identity Resolution Engine adds a critical element in solving organized crime. It helps to uncover the true identities of people or activities via link analysis. Link analysis evaluates widespread company and third-party data as well as personal attributes, revealing relationships between suspicious persons and events that might have gone undetected.
The updated software integrates entity resolution with social network analytics, enabling government agencies, banks and insurance companies to improve their screening process and detect non-obvious relationships. It analyzes disparate data without normalizing it. Additionally, Fair Isaac's library of pre-built network analytics ensures that the data does not have to be moved to any proprietary database.
This process has many potential implications in cyber security, including detection of insider fraud, exposing criminal rings and money laundering schemes, and even uncovering terrorist networks. The software finds an apt application in insurance claims and banking frauds, where it can discern hidden patterns and common aspects in multiple crimes, thus exposing criminal masterminds. Per a major U.S. insurer, integrating social network analysis detected 15-20% more fraudulent claims than using predictive analytics alone.
FICO Identity Resolution Engine 3.6 software offers a unique blend of capabilities - identity resolution, high-performance detection analytics, complicated linking algorithms, and data visualization. It is compatible with Fair Isaac's existing applications such as FICO Falcon Fraud Platform, FICO Application Fraud Manager and FICO Insurance Fraud Manager and is a popular software add-on.
With operations in over 90 countries, Fair Isaac helps organizations in superior strategic decision-making processes that drive higher levels of growth, profitability and customer satisfaction. Its analytics software and tools are used across multiple industries to manage risk, fight fraud, enhance security and optimize operations.
Fair Isaac currently holds a Zacks Rank #3 (Hold). Other stocks in the industry that look promising include Luxoft Holding, Inc. ( LXFT ), Kofax Limited ( KFX ) and CDW Corporation ( CDW ). While Luxoft sports a Zacks Rank #1 (Strong Buy), Kofax and CDW carry a Zacks Rank #2 (Buy) each.