Technology Upgrades Enhance Network Reliability Debitprotectsm
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S e p t e m b e r / O c t o b e r 2 0 0 7 Bringing Value to Electronic Payments® DebitProtect SM Fraud Detection System Available Network-wide ULSE is now providing issuers a modeling parameters and data from the PULSE recently completed a three- powerful new weapon in the fight transactions. Scores that exceed a preset month beta test of DebitProtect with a against fraud. PULSE’s neural- threshold trigger alert e-mails sent in group of selected PULSE participants. Pbased fraud detection system, was near real-time to personnel designated by Overall, they were very pleased with the launched network-wide on September 28. the card issuer. Users are directed to log service. Laurinda Thomas, loss preven- This service was on to a secure Web site to review the tion manager for First Technology designed to suspect transaction’s information and, Services, Inc., gives an example: “The day reduce the risk after investigating the transaction, to we went live with PULSE’s fraud detec- of debit card classify it as either “fraud” or “not fraud,” tion system, it helped us identify three fraud and to based on their institution’s fraud mitiga- fraud cases and saved us more than help maintain tion policy. The confirmed fraud infor- $13,000 in attempted fraudulent transac- “The day we went live with consumer confidence in the use of mation is fed back into the DebitProtect tions. DebitProtect helps us catch fraud debit cards. neural model to enhance its ability to situations sooner than it would typically PULSE’s fraud detection The industry average for number of predict fraud. take for the bank or the account holder fraudulent transactions on a single The model also will utilize confirmed to become aware of the situation, thus system, it helped us identify compromised card is six. DebitProtect fraud data submitted to PULSE by all reducing our losses. In addition, our three fraud cases and saved provides an early warning system for participants. This vital information cardholders appreciate the fact that their issuers so they can detect fraud early and enables PULSE to customize the neural bank is watching out for them.” us more than $13,000 in block subsequent transactions following model to the participants’ cardholder DebitProtect will be rolled out in the first fraudulent one, which could cut patterns. Monthly confirmed fraud phases, with new enhancements provided attempted fraudulent their losses significantly. DebitProtect submission is mandatory, based on during each phase. The first phase sends transactions.” uses a neural network-based model updated PULSE Operating Rules and transaction alerts in near real time of specifically configured for the debit Procedures, which took effect this past the transaction occurring. By the end of – Laurinda Thomas environment. The service was designed August. 2007, PULSE plans to support automatic Loss Prevention Manager for ease of use and does not require any Financial institutions can receive blocking of transactions based on rules First Technology Services, Inc. technical changes on the part of PULSE their own fraud alerts and submit their and parameters established by the card participants. own confirmed fraud data, or they can issuer. PULSE also plans to add request their processor perform one or benchmark and peer reporting and How It Works both tasks for them. If the processor customization of score thresholds in DebitProtect uses a neural network- and financial institution agree, the pro- 2008. based system and provides risk scoring cessor can submit fraud as well as handle For more information on for all PULSE issuer transactions transaction alerts on behalf of their DebitProtect, please contact PULSE at switched on the PULSE network: PIN, financial institutions. Many PULSE 800-420-2122 and ask for a member of signature and PINless. Scores are derived direct processors are preparing to submit the Fraud Department. from card usage patterns, pre-defined confirmed fraud for their customers. Switching and Settling 2.0 Technology Upgrades Enhance Network Reliability s part of its mission to provide said. “It’s not just about adding more the operating system, infrastructure core, exceptional reliability and avail- hardware; we want to be sure our systems software and product offerings. When the ability, PULSE has initiated a are designed with our participants’ needs upgrades are completed, the PULSE Aseries of network upgrades designed to in mind, to offer them service capabilities switch platforms will be positioned to achieve the highest switch availability that bring real value. We want to provide offer a much greater array of resilient possible. the most reliable network in the EFT configurations. market.” Next-level Network Throughout the past year, PULSE Active-Active Processing Warren Coles, PULSE executive vice has been working on major enhance- PULSE can now offer participant president and chief operating officer, ments to both of its redundant switch processors the option of connecting to outlines the value of these network platforms that are on track to be com- both platforms simultaneously and enhancements. “PULSE is committed to pleted by November 1, 2007. These processing transactions in a true “active- investing in the resources necessary to modifications were designed to improve active” state. Participants that opt for this ensure that we maintain our position as a the performance of the PULSE switch unique service will be required to debit card payments industry leader,” he platforms and have included updates to (continued on page 4) P3 Conference Announces ear PULSE Participant, As I write this column, General Session Speakers the 2007 hurricane season lans are shaping up for the 2008 PULSE Conference to be held April 28-30 at Dis coming to an end. Scientists around the Wynn Las Vegas resort. P3 will explore new frontiers in fraud protection, the world use NASA satellite imagery examine best-in-class performance practices and discuss proven strategies for to better understand the causes and Pmaximizing debit profitability. effects of hurricanes and other natural hazards such as tsunamis, earthquakes, Opening General Session fires and floods. Weather-related events The P3 conference begins with a unique Q&A forum with PULSE President are just one of the issues that PULSE Dave Schneider. This opening general session will feature a discussion about the payments industry and address questions from attendees. The format promises to be faces daily as we strive to deliver your Dave Schneider an informative and rewarding experience for all attendees. cardholders uninterrupted access to “As one of the nation’s their money. Common Ground Exceptional reliability and avail- The keynote general session, “Common leading debit networks, ability are not an option at PULSE. Ground,” features liberal Bob Beckel and we maintain one of the Since migrating to an in-house switch conservative Cal Thomas, authors of the in October 2003, we have worked syndicated USA Today column of the same name. These two politically savvy and politi- most advanced opera- diligently to eliminate service interrup- cally different analysts take their differences tions that affect your cardholders. tional infrastructures in and find the “common ground” that unites As one of the nation’s leading debit all Americans. More like a conversation the industry. Core networks, we maintain one of the most between friends than a debate, they inspire advanced operational infrastructures in audiences to find the common ground in their switching and settle- Bob Beckel and Cal Thomas the industry. Core switching and own beliefs, and put aside politics as usual. ment services are settlement services are performed on Beckel, one of Washington’s top political analysts, began his career in politics in 1968, working for Robert F. Kennedy’s campaign. For the past several years, Beckel dual identical platforms in Houston performed on dual has had an active consulting practice, advising his clients on communication strategy, and Dallas. Both platforms operate identical platforms in consensus building and public policy. simultaneously and continuously, Thomas is one of the most widely read and highly regarded voices of the political Houston and Dallas.” enabling us to minimize the impact of scene. He has a twice-weekly column appearing in more than 600 U.S. newspapers, any event that affects either platform or and is a panelist on the popular Fox News Watch show. our telecommunications infrastructure. Although Beckel and Thomas have different opinions on almost every subject Our dual platforms are connected through a sophisticated telecommunications imaginable, the goal of Common Ground is to show Americans that bridges can be forged between differences and agreements can be made. “superhighway” that provides a high level of security via physically secure hardware encryption devices. If we experience an issue with one of our platforms, we are able Closing General Session to shift 100 percent of network activity to the other platform, allowing us to pro- One of the most successful college football coaches vide ongoing service. of all time, Lou Holtz will bring the conference to a With the goal of continuous processing and 100 percent switch availability, close with a powerful motivational message. we have instituted a number of network and operational enhancements over the When Holtz took over as Notre Dame’s 27th head past year. As described in a story on the front page of this issue of PULSATIONS, football coach in November 1985, he brought with him a well-proven reputation as a fixer of football programs these improvements will help PULSE and participating processors continue to sat- following a series of spectacular repair jobs at William & isfy your institution’s expectations, and the expectations of your cardholders, with Mary, North Carolina State, Arkansas and Minnesota. respect to network availability. In 11 seasons at Notre Dame, Holtz chalked up a As always, I thank you for your support of PULSE.