Case Study: Hong Leong Bank achieves 143% increase in fraud detection and a 2-basis-point fraud-to-sales ratio with FICO Falcon Fraud Manager

Hong Leong bank outsmarts fraudsters with Falcon Fraud Manager

Hong Leong Bank, a leading Malaysian personal and commercial bank with more than 100 years of experience, faced rapidly changing credit-card fraud after Malaysia moved to chip-and-PIN in 2005. While counterfeit card fraud fell sharply, fraudsters shifted to online channels—Internet fraud rose to about 85% of the bank’s total—forcing Hong Leong to strengthen detection without disrupting customers.

The bank fully deployed FICO Falcon Fraud Manager (using the Malaysia Consortium Credit model) and tuned fraud score thresholds and business rules to be more aggressive yet precise. Over one year total fraud detected rose 143%, fraud-case investigations fell 20%, account false positives were low (AFPR 2.56% for key cut-offs), and the bank maintained an industry-leading fraud-to-sales ratio of about 2 basis points.

Hong Leong Bank

James John

Head of Fraud Management