FraudWatch

Uses Automated Workflow Powered By Configurable Rules

Would your cardholders value being notified of fraud while transactions are occurring?  Want the ability to adapt to fraud schemes by revising and customizing the rules used to monitor transactions?

FraudWatch is a service module that utilizes the intelligence and power of Ondot's extensible cards services platform allowing card portfolio managers and risk analysts to create custom rules on-the-fly when monitoring for potential fraud.  Any combination of velocity, amount thresholds, transaction type, merchant type, and specific merchant IDs can be applied to an entire card portfolio or to subsets of cards.

If FraudWatch detects suspicious card activity as defined by the rules that are set, a series of actions are triggered.  These actions decrease manual activities by automatically promoting the incident to the case management database.  The card used in the transaction may also be blocked for further use (i.e., warm carding) and the cardholder alerted.  The cardholder can then confirm the transaction or mark it as fraudulent.  All this happens in near real time. 

FraudWatch integrates with the payment switch infrastructure allowing it to “watch” all ISO 8583 transaction processing messages in real time.  Working in concert with the Ondot platform's service-oriented architecture, FraudWatch analyzes the components of the ISO 8583 request and respond messages, applying the rules set by the portfolio and risk managers without altering the transaction stream in any way.

Each of FraudWatch's features delivers benefits that enhance the value of an issuer's card portfolio:

  • Simplifies the process associated with set up of the monitoring function by allowing administrators to import the cards to be monitored via batch files.
  • Enhances the ability to respond to fraud on the fly with rules customized to detect emerging fraud patterns.
  • Decreases false declines by allowing rules to be set across a comprehensive set of variables including transaction velocity, spend limits, transaction types, merchant types, merchant locations and merchants by name.
  • Improves efficiency and effectiveness by automating workflow actions based on rules settings. Actions can be triggered to notify appropriate personnel, alerting the cardholder, blocking card use and creating an incident report or case.
  • Expedites the analysis, investigation and review of potential fraud with the ability to identify other instances triggered by same conditions. FraudWatch consolidates incidents triggered by the same rule and then tags similar existing cases.
  • Improves productivity and level of responsiveness by allowing users to create and manage cases, change to whom the case is assigned, add notes, modify case status or associated incidents and track blocked cards. 
  • Increases satisfaction and confidence of cardholders by making it possible to notify them of suspicious card activity in near real time.  Cardholders are provided with contextual options, communicating to issuer if transaction should be allowed.

Ondot's FraudWatch module works in conjunction with other service modules that are powered by our card services platform to give issuers the capability to detect fraud earlier and alert cardholders sooner, ultimately increasing card use and the value of a financial institution's card portfolio. 

Today more than 80% of transactions in the United States utilizing these type of capabilities are powered by Ondot's extensible platform and industry leading breadth of services. FraudWatch utilizes this platform to assist financial institutions seeking to not only improve their responsiveness to fraud but also want to decrease fraud in order to increase card use.