Analytics and software company FICO has released an infographic highlighting the speed at which Big Data analytics software operates. For credit card payments alone, its FICO Falcon Fraud Manager software is able to detect potentially fraudulent transactions within a mere 40 to 60 milliseconds, which is ‘five times faster than you can blink’.
Apparently, the software performs 15,000 calculations in milliseconds whenever a credit card is swiped. These real-time fraud calculations use a wealth of data associated with many variables, including the transaction amount, merchant profile, transaction location, point-of-sale device, time of day, and credit card account history.
Such speedy fraud detection has helped reduce crimes. In fact, there has been a 70 per cent reduction in US fraud losses on credit cards, as a percentage of credit card sales, since 1992 – when real-time fraud analytics were introduced.
“Stopping payment fraud is a balancing act that requires payment card providers to protect their cardholders without inconveniencing them,” said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. “By combining the power of new analytics technologies and the accumulated knowledge gleaned from trillions of previous payment transactions, it is now possible to fight fraud with surgical precision at incredible speeds, so the consumer payment experience is not disrupted.”