HOUSTON – Financial institutions, merchants and consumers alike stand to benefit from DebitProtect, a fraud detection and notification system being implemented across the ATM/debit network of Pulse EFT Association, a Discover Financial Services company.
Pulse has launched its new neural network-based fraud detection system across its entire network, following a three-month beta development program involving several financial institutions. DebitProtect provides risk scoring for all Pulse PIN, signature and PINless debit transactions on the Pulse network and notifies designated financial institution personnel via e-mail of possible fraudulent transactions.
"Because debit cards are used differently than credit cards, Pulse designed the DebitProtect system based on a highly customized data model developed specifically for debit portfolios," said Pulse president Dave Schneider. "This neural model will be continuously refined utilizing fraud data obtained from Pulse issuers. In addition, the service was developed for ease of use and does not require any technical changes on the part of Pulse participants. As a result, financial institutions large and small will benefit greatly from the service – the broadest of its kind implemented at the EFT network level."
Debit transactions in the United States have tripled since 2000 and reported debit card fraud has increased. Pulse's 2007 Debit Issuer Study revealed that U.S. financial institutions lost an estimated $662 million to debit card fraud in 2005. The Pulse DebitProtect system will assist financial institutions in identifying and responding quicker to possible debit card fraud.
