Case Study: Banamex/Citigroup achieves dramatic reduction in fraud losses and false positives with FICO Falcon Fraud Manager

Banamex/Citigroup dramatically decreases fraud losses, false positives

Banamex/Citigroup, Mexico’s largest financial group, was facing a severe fraud problem: losses had spiked to more than 100 basis points, the false-positive ratio was 50:1, detection was only about 25%, and recovery rates were low—making fraud management slow, costly, and resource-intensive.

The bank deployed FICO Falcon Fraud Manager as part of an integrated, real-time system combining rules, neural networks and data mining tied to its authorization flow. As a result, fraud losses fell to 8 basis points, false positives improved to 11:1, detection rose to 80%, fraud amount per account and detection times declined, and many fraudulent transactions were stopped at point-of-sale.

Banamex

Liberto Ferrer

County Fraud Risk Officer