PRODUCT BRIEF

SAS Fraud Management

®

Real-time scoring of all transactions for fast, accurate fraud detection

Overview
Organizations around the globe lose
approximately 5 percent of annual reve-
nues to fraud, which translates into
potential losses worldwide in excess of
$2.9 trillion.1 And while direct losses due
to fraud are staggering in dollar
amounts, the actual cost is much higher
in terms of loss of productivity and loss
Challenges
of customer confidence (and possible
• Emerging fraud trends. Changing
attrition), not to mention losses due to
criminal tactics and the anonymity of
fraud that goes undetected.
e-commerce make fraud prevention a
constantly moving target.
Although most banks have fraud detec-
tion systems in place, such systems • Growing complexity. Acquisitions,
typically provide reactive, after-the-fact growth and increased globalization
analysis of questionable transactions make it harder to monitor multiple
– an approach that comes too late to portfolios and business lines effectively.
give any real protection from loss. Real-
time transaction scoring is your best • T echnology limitations. Current
option for preventing, for example, card systems do not support robust
fraud at the point of sale or ACH/wire analytical modeling and may slow
fraud prior to the release of funds. transaction authentication.

• Diverse data sources. Geographically

SAS Fraud Management is a full-service, dispersed customers and businesses
enterprise solution, with the capabilities
make it difficult to access the right
to monitor multiple lines of business
information in the right format.
on a single platform, and is the only fraud
solution available that offers 100 percent • Evolving compliance demands.
real-time scoring and decision capabilities Keeping up with changing regulatory
by looking at all transactions – including requirements is a constant struggle.
purchases, payments, fund transfers and
nonmonetary transactions. No other
system on the market provides this
breadth of coverage.

1 Based on a study conducted by the Association

of Certified Fraud Examiners (ACFE).
 Fight fraud and minimize
customer impact with
industry-leading analytics

The SAS® Solution Why SAS®? Benefits

SAS Fraud Management is a next- As a holistic enterprise fraud manage- Find Fraud Fast by Scoring 100 Percent
generation, enterprisewide fraud detec- ment system, SAS Fraud Management of Transactions in Real Time
tion solution. Built on SAS’ proven, provides real-time integration to authori-
advanced platform, the solution provides: Effective fraud detection is about
zation systems, on-demand scoring,
stopping the maximum amount of fraud
• On-demand, real-time scoring of all advanced analytics, rule writing, simula-
in real time while maintaining a low false-
transactions – purchase, payment and tion capabilities, alert management and
positive rate. To accomplish this, SAS
reporting. Our advanced analytic technol-
nonmonetary. profiles 100 percent of all transactions
ogies significantly reduce the number of
(monetary and nonmonetary transac-
• Subsecond response time with false positives and increase fraud detec-
tions) in real time, which enables better,
sustained high throughput. tion rates. This, in turn, enables you to
faster fraud detection with an approach
improve customer service by reducing
• Powerful advanced analytics, modeling that is far superior to traditional fraud
the number of delayed transactions, as
platform and decision engine, including: solutions.
well as gain greater operational efficien-
• A unique “signatures” approach cies through the better use of staff for Such solutions have less robust archi-
designed to support multiple entities. things like alert management. tectures that pass through the majority
• Advanced neural network modeling of transactions believed to be non-
for faster, better fraud detection. The solution’s models are built on a fraudulent, which leaves financial institu-
• Hybrid modeling, which integrates combination of consortium and individ- tions vulnerable to serious attacks. In
ual bank data, which includes all trans- today’s world, fraudulent schemes
pooled consortium data into
action data values to be utilized for change frequently, and you can’t afford
bank-specific models.
scoring and decision. The solution also to let any transactions skip the detailed
• Champion/challenger functionality. includes a highly functional fraud alert scoring and profiling process.
• Ability to deploy and monitor management and investigation system,
multiple fraud models. extensive reporting capabilities and a SAS Fraud Management offers perfor-
new, flexible connector to plug into mance and real-time transaction scor-
• Seamless, real-time hot-listing and
authorization systems. And because ing enhancements that translate into
integration with authorization
SAS Fraud Management allows both faster, more accurate decisions on pos-
systems across the globe.
operational and performance reporting, sible fraudulent transactions. These
• Extensive rule-writing capabilities and you can rely on it as your primary solu- enhancements, combined with SAS
the dynamic creation of “public” tion for fraud detection and investigation. advanced analytics, make SAS Fraud
signatures. Management the solution of choice for
reducing the number of false positives.
• Powerful reporting capabilities,
including client-configurable API.

• Robust, flexible alert and case

management for expanding customer
information and decision making into
multiple business lines, including the
monitoring of multiple accounts
belonging to the same account holder.
With SAS Fraud Management, you can:
Make Faster, Better-Informed, The SAS® Difference
• More accurately determine whether or Risk-Based Decisions No other system available provides the
not transactions should be stopped
SAS Fraud Management can extend depth and breadth of coverage you get
or flagged as an alert by using SAS’
the ability to detect, dispose of and with SAS Fraud Management:
unique signature approach.
combat fraud using various tools across
your entire business. • Reduce your average fraud loss
• Make customer service more efficient
by scoring 100 percent of all
by reducing the number of delayed
SAS offers more sophisticated analytic transactions in real time at the POS.
transactions and false positives.
intelligence and complete integration • Use all available data –
• Realize greater operational efficiencies with the industry’s latest anti-fraud account, payment and nonmonetary –
by using alert management capa- measures. As an enterprisewide fraud
in your fraud decisioning process.
bilities to make more effective use detection system, the solution
of staff resources and to reduce the incorporates analytics based on multiple • Establish an enterprisewide
amount of time and money wasted data sources and with multiple detection framework for transaction decisioning.
investigating false positives. requirements, enabling you to realize the
• Take advantage of the latest
much sought after – but rarely achieved –
anti-fraud measures, including
Gain a Holistic, Customer- goal of preventing and detecting crime
chip and PIN technology.
Centric View of Fraud across the entire spectrum of fraudulent
techniques that today’s criminals employ. • Test and implement the most
SAS Fraud Management provides a
expansive and predictive set of fraud
holistic, customer-centric view of fraud
In addition to significantly reducing models possible on a single platform.
that is unrestricted by transaction type or
potential losses from fraud and improv-
business channel. The solution lets you: • Link and simultaneously monitor
ing the customer experience, the SAS
• Monitor the behavior of multiple multiple accounts, regardless of type,
solution can also lower the operational
entities across the enterprise, costs of fighting fraud by creating a belonging to the same cardholder.
including customer, account (DDA, more flexible, enterprisewide fraud plat- • Run multiple organizations or
wire, ACH, card), and Internet and form that enables you to respond faster hierarchies within a single
phone banking. to new threats as they arise – in real instance, enabling them to share
time – with minimal IT infrastructure elements while remaining logically
• Profile entities simultaneously at
changes required to deploy new fraud segregated.
different levels (e.g., relationship,
prevention strategies.
account, customer). • Deploy the solution across multiple
sites easily and at low cost, thanks
As a result, you can fully understand the
to its zero-footprint technology.
behavior of an individual throughout the
multiple products and channels they • Accommodate different fraud
may interact with. strategies and operational
requirements for multiple portfolios
and product lines with the solution’s
flexible system architecture.
 No other system
on the market provides
this breadth of coverage.

Tailor the Solution Capabilities Advanced Analytics for Achieving the

to Local Requirements Highest Levels of Fraud Detection
Real-Time Decisioning from
By listening to the collective wisdom of Authorization Systems SAS Fraud Management uses the
fraud managers from across the globe, industry’s most advanced analytics
SAS was able to design a solution that SAS Fraud Management includes a to give your bank a significant advantage
captures the practical principles of fraud universal SAS connector (USC) interface in the quest to manage and control fraud
management and can be specifically kit that connects the SAS solution with losses. Improved, proprietary fraud mod-
tailored to each local implementation. your institution’s authorization and pro- eling techniques provide greater fraud
The underlying systems and software of cessing systems. Transactions flow from detection and model stability, plus
SAS Fraud Management are truly con- the authorization system to the USC, reduced false positives. The solution
figurable and adaptable, enabling any where they are prepared by appending allows for multiple predictive models sup-
implementation to be optimized to meet the appropriate data based on the ported by a champion/challenger facility
local market requirements. transaction type. Data may contain to ensure the best approach every time.
information such as user and system
The inherent flexibility of SAS Fraud variables and will vary depending Hybrid Models
Management enables country fraud on transaction type.
SAS’ innovative hybrid modeling
managers to manage their fraud and approach preserves the benefits of both
operational environments in the manner 100 Percent, Real-Time Scoring
custom and consortium approaches.
that is most effective and appropriate of All Transactions
The solution incorporates your bank’s
for their bank, their customers and their The SAS scoring engine, coupled with data as the core model, and then inte-
products. the USC, controls the firing of models grates pooled consortium data to create
and the execution of both user-written a new, more predictive single model that
Take Advantage of All Available Data and system rules. The USC submits the has the power of a consortium model,
The inclusion of all available data is transaction to the scoring engine, which while retaining the value and flavor of
essential for effective fraud manage- then executes the appropriate fraud your own customer data.
ment, particularly as fraudulent schemes models to produce a score, as well as
evolve. SAS Fraud Management incor- executing the associated decision logic Signatures
porates all available data types – or rules as specified by the user. While most solutions use an algorithmic
customer, household, merchant, cycle- method to express customer behavior,
cut, third-party and issuer-specific data; Profiling 100 percent of all transactions SAS uses the power of raw data to mon-
authorizations; deposits; and nonmon- enables you to capture key customer itor every single transaction. Our unique
behavior data. The solution also lets
etary transactions – into the modeling “signatures” approach captures cus-
process. The result is enhanced predict- you develop and create your own tomer behavior patterns from every
ability and reduced false-positive rates profiles using public signature entities source and evaluates that information
in both models and rules. (e.g., account, customer, beneficiary, IP, every time a transaction is scored, help-
etc.) that are under the complete ing you understand how customers
control of your organization. In addition, transact and even how they conduct
a set of SAS-built profiling and scoring their overall relationships with your bank.
models are included to assess and
monitor the payment risk associated
with accounts and customers.
With every subsequent transaction, the prioritization of higher-risk activities,
Superior Rules Management
system looks for patterns and inconsis- leading to greater efficiency, increased
tencies in cardholder behavior, as well The solution’s superior rule manage- detection rates and reduced losses.
as complex, subtle patterns and other ment configuration capabilities enable In addition, you can appoint automated
indicators of fraud. As a result, you can you to monitor and track historical alert assignments to various investiga-
easily detect changes in behavior, which behavior patterns at different entities, tors or analysts based on rules and
dramatically improves the predictive solely based on business needs. This requirements set by the user.
ability of your models. You can also build multiorganization configuration lets you
and deploy your own models in the break down organizational silos as nec- Powerful Reporting and Analysis
online environment, which enables essary to deploy and manage the solu-
SAS Fraud Management includes
you to take advantage of your in-house tion in whatever manner is best suited to
a full reporting system that allows users
expertise. your organization.
to easily generate reports using any
data in the system and publish them
Neural Network Models SAS Fraud Management lets you
in a variety of formats, including HTML.
develop and create your own profiling
SAS’ proprietary modeling technique
rules for defined entities (e.g., benefi-
– Self-Organizing Neural Network A historic database can be used for
ciary, IP address, etc.). These profiling
Arboretum (SONNA) – greatly enhances reporting, MI and as a “lab” to test new
entities can then be used in business
model performance by more effectively rules before they are deployed into pro-
rules to make payment decisions in real
capturing information on data irregulari- duction.
time or simply trigger alerts for investiga-
ties. Because account behavior is
tion. In addition, a set of SAS-built profil-
sometimes too intricate to be captured About SAS
ing and scoring models enable you
by an individual neural network, SONNA
to assess and monitor the payment risk SAS is the leader in business analytics
enables the use of an ensemble of
associated with accounts and custom- software and services, and the largest
optimized neural networks.
ers that may incorporate entities independent vendor in the business
consisting of beneficiary and/or credit intelligence market. Through innovative
The SONNA neural networks work with
reference bureau data values or solutions delivered within an integrated
an adaptive segmentation scheme that
other external data. framework, SAS helps customers
evolves during the model building pro-
at more than 75,000 sites improve
cess based on the ability of the neural
Flexible Alert Management performance and deliver value by mak-
networks to detect changing customer
ing better decisions faster. Since 1976,
behavior. This leads to not only signifi- SAS Fraud Management provides flex-
SAS has been giving customers around
cantly increased fraud detection perfor- ible alert management capabilities that
the world THE POWER TO KNOW®.
mance, but the models become more automatically assemble alerts from
www.sas.com
robust over a long period of time. multiple monitoring systems, associates
them with common accounts or
customers, and provides investigators
with a more complete perspective on
the risk of a particular account or indi-
vidual. Each alert is assigned a risk
score based on the specific characteris-
tics of the activity, which enables the
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