Real-Time Fraud Protection System
FraudBlock™ is a separately licensed rules-based fraud detection and prevention system for SWITCHWARE® and EZswitch® that functions in both real-time and background modes. Issuer-based transactions that pass through FraudBlock are tested against rules that identify, block, or warn of fraud taking place. The real-time mode provides online authorization decisions to identify and prevent fraudulent activity before it happens. The background mode accumulates historical data to identify fraudulent activities and patterns without making online authorization decisions.
The system’s architecture is flexible and highly parametrized. The user interface allows system configuration and management functions to be performed via client applications. The dynamic, rules-based nature of the system allows flexible tailoring for current and future business requirements. Real-time and background system monitoring functions are accomplished through electronic query facilities.
| Functionality | Full Edition | Stand Alone Edition | Network Edition |
|---|---|---|---|
| SWITCHWARE/EZswitch Integration |  | | |
| Real-time fraud detection | | | |
| Near real-time fraud detection (for post authorization detection) | |  | |
| Identify potential fraud activity using pre-defined fraud rules | | | |
| Transaction-based rules validation | | | |
| Manage post-action outcomes when a rule violation occurs | | | |
| Maintain history of suspected fraud activity | | | |
| Fraud event alerting via email and SMS-text | | | |
| Detect fraud based on low-value (e.g. less than a dollar) transactions | | | |
| Detect fraud based on card-not-present transactions | | | |
| Develop and disseminate ad-hoc and canned fraud activity reports | | | |
| Establish “Risky” merchant categories and “Risky” countries | | | |
| Detect/block transactions that occur in different countries at the same time | | | |
| Copy/duplicate rules (rule iteration feature) | | | |
| Set degree of risk (low risk, medium risk, high risk) for each risky category | | | |
| Establish “Risky” merchant based on merchant ID | | | |
| Enable and set fraud rules by specific BIN | | | |
| Establish acquiring rules for ATMs and POS devices | | | |
| Special fraud rules for EMV handling (Fallback, Entry-mode, etc) | | | |
| Case management feature to manage and follow up on fraud events | | | |
| Fraud Prescan feature | | | |
| On-demand network denial rules (block based on values in the ISO message) | | | |
| Differentiate fraud that comes from ATM vs POS, PIN vs signature transactions | | | |
| Deny international transactions & set overseas travel windows for card use | | | |
| Full client auditing and real-time transaction monitoring and research | | | |
| Temporary fraud detection and blocking override for individual cardholders | | | |
| Block transactions based on acquirer information (merchant, country, etc.) | | | |
Using FraudBlock with SWITCHWARE or EZswitch can stop fraud instantly.
- Full Edition. Includes the client applications and all software components for real-time and near real-time fraud detection, fraud monitoring and research, client auditing, rules management, and risky merchants/merchant categories and countries designation. It also includes the On-Demand Network Denial rules management and fraud activity reporting.
- Standalone (SA) Edition. NEW! Provides an isolated instance of FraudBlock that can serve either for real-time fraud protection or for background (near real-time) protection. The Standalone Edition can be installed separately, and does not require integration with an existing SWITCHWARE or EZswitch system. FraudBlock SA is meant for customers who wish to license an isolated fraud protection solution that does not need to integrate with CSFi’s ATM switching and debit processing solutions.
- Network Edition. (Included with SWITCHWARE G4 and EZswitch G4) This solution provides the FraudBlock client application for exclusive use to implement and manage On-Demand Network Denial Rules. The Network Denial Rules operate as a separate set of rules used strictly for blocking transactions from being accepted in the system.
The demand for ATM and debit payment networks has grown considerably around the world. In 2016, Javelin Strategy & Research revealed the number of identity fraud victims increased by 3% (13.1 million consumers) in the United States, with a total of $15 billion stolen in identity-related fraud. The need for fraud protection has never been greater, and FraudBlock provides an easy-to-use, instantaneous, real-time solution that can:
- Block fraud at the cardholder level. FraudBlock can block, identify, or warn of fraud based on patterns used by the cardholder. For example, if a specific cardholder spends over a pre-determined amount in a given time period, FraudBlock can track that specific cardholder and treat future transactions as fraudulent.
- Block fraud In real-time and background. Many fraud solutions require card issuers to send transactions to the fraud protection system after they are already processed. However, FraudBlock inspects transactions as transaction processing is occurring which means fraud can be stopped before it happens.
- Block fraud using On-Demand Network Denial Rules. In addition to fraud rules, FraudBlock also allows card issuers to build network denial rules that can reject transactions based on a value in the ISO 8583 transaction message being sent by the EFT network. This highly flexible component provides immediate protection against a wide range of possible fraud attempts based on a combination of data elements sent from the EFT network. For example, a rule could be constructed to block all transactions from a particular state where a PIN value is not found in the transaction.
- Block fraud outside the country. FraudBlock can isolate fraudulent transactions that come from a specific country. If an issuer is receiving large transaction amounts or transaction frequency is high from a “risky” country; FraudBlock can monitor and block the transactions, notify the issuer, and modify the card statuses.
- Block isolated merchants or risky merchant categories. Where transaction frequency is high at a particular merchant, FraudBlock can identify the repetition occurring at the same merchant and block at the cardholder level. FraudBlock will permit card issuers to identify merchant categories as “risky,” and block or warn of transactions coming from a particular merchant category.
- Set the degrees of risk for each risky category. For countries, merchant categories and merchant ID, set the risky categories and rate them based on the degree of risk (e.g. high-risk, moderate-risk, low-risk, etc.).
- Copy or duplicate rules. Duplicate a specific fraud rule and then slightly modify the parameter to uncover unique fraud situations, or establish escalation criteria.
- Build Custom Rules. Fraudulent transactions are not always the same, and FraudBlock was built to evolve with the different fraud situations a card issuer faces. The system comes pre-loaded with more than a dozen rules, but card issuers can have custom rules built specific to their needs.
To find out more about licensing FraudBlock, please contact CSFi.