ACI Worldwide, a provider of application software for electronic payments, has launched an online fraud reduction calculator that allows banks to check the effectiveness of their current fraud prevention system.
The new solution enables organizations to determine the scope for improved performance by detecting the improvement in the percentage of fraud recorded.
Derren Jones, director of fraud and risk management at ACI, said: Existing solutions often ignore the most important metric of the model, the point of detection. By ignoring this measure, people can get a seriously misleading indication of actual performance. If the point of detection is lowered, fraud will be found earlier, which results in lower losses. Ultimately, the best way to measure the success is to have a balance of three elements: point of detection, false positive rates and finally the detection rate.