How FICO and Fiserv Use AI to Slash Fraud and Improve Real-Time Detection

How FICO and Fiserv are Enhancing AI-Powered Fraud Management

Artificial intelligence is becoming a key tool for detecting and responding to fraud threats in real time. To meet the increasing demand for instant fraud prevention, Fair Isaac Corp. (FICO) and Fiserv Inc. have teamed up. Their collaboration combines advanced technologies such as Adaptive Analytics, Global Intelligent Profiling, and Fraud Predictor to deliver smarter, behavior-based fraud detection and self-learning capabilities.

Charlotte Ritonya, vice president of risk and fraud issuing at Fiserv, explains that these tools work together to provide a powerful defense. Adaptive Analytics updates fraud detection models daily to identify new patterns. Global Intelligent Profiling monitors automated teller machine (ATM) activity, while Fraud Predictor assesses the likelihood of fraud at merchants. Bundling these solutions creates a comprehensive approach that has proven effective at the highest service levels.

Insights from FICO and Fiserv Leadership

Alexander Graff, senior vice president and managing director at FICO, and Charlotte Ritonya discussed their partnership and AI fraud management strategies during an industry event. Ritonya described their service model as offering good, better, and best options, with the best tier utilizing all three AI tools for maximum fraud prevention.

They emphasized that AI helps reduce false positives, which means fewer legitimate transactions are mistakenly flagged, improving customer experience. As Ritonya noted, “Fiserv moves money for thousands of issuers, banks, and merchants globally. Maintaining low fraud basis points is critical, and with FICO’s systems, we’ve been able to cut fraud rates even further for clients.” For example, a recent client with $3 billion in assets saw a 10% reduction in fraud after switching to their services.

Longstanding Partnership Driving Continuous Improvement

Fiserv and FICO have worked together for over 25 years, evolving their fraud management approach to incorporate AI. Graff highlighted that their models learn from every transaction to quickly adapt to emerging fraud trends. This ongoing refinement helps financial institutions offer secure and seamless payment experiences.

By integrating AI-powered tools with deep industry expertise, FICO and Fiserv provide solutions that balance fraud prevention with customer convenience. This approach supports management teams looking to protect assets and maintain trust without adding friction for users.

• Adaptive Analytics: Daily model updates to detect new fraud patterns.
• Global Intelligent Profiling: ATM monitoring to identify suspicious activity.
• Fraud Predictor: Evaluates fraud risk at merchant level.

For professionals interested in expanding their knowledge of AI applications in finance, resources and courses are available at Complete AI Training.