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HSBC improves real-time fraud management

Carol Ko | June 9, 2009
Protection against branch banking, bank transfer and online payment fraud

HONG KONG, 9 JUNE 2009 HSBC has deployed a real-time fraud detection system to combat fraud across multiple lines of business and channels.

The bank is implementing SAS Fraud Management system to step up the bank's protection beyond the credit and debit card fraud. SAS is a US-based business analytics software and services provider.

HSBC Holdings has more than 100 million customers worldwide through around 10,000 offices in 86 countries and territories in Europe, the Asia-Pacific, the Americas, the Middle East and Africa. With assets of some US$2,527 billion at 31 December 2008, it is one of the world's largest banking and financial services organisations.

Real-time monitoring

The real-time fraud detection system is said to enable the bank to monitor activity at the customer, account and channel levels, resulting in further protection against branch banking, bank transfer and online payment fraud, as well as internal fraud. It represents part of SAS' continuing investment in helping financial institutions to reduce fraud.

With the new deployment, HSBC is expected to gain benefits from enhanced reporting and rule writing capabilities, resulting in greater detection rates and continued reduction of false positive rates. By monitoring behaviour at the customer level, the bank will gain more streamlined and efficient use of its investigative resources. The bank will also continue to use SAS' alert management, routing and queue prioritisation software to maximise efficiencies and allow the highest priority alerts to be worked on quickly.  

Derek Wylde, head of group fraud risk, HSBC, said: We are keen to continue our investment with SAS having seen success with SAS Fraud Management in credit and debit card fraud protection and experiencing SAS' flexible and innovative approach to fighting fraud. As a testament to this, we have chosen SAS as our solution for enterprise fraud management and are expanding our protection over other areas of fraud with SAS' software. We're also delighted that HSBC customers around the world are now benefiting from the same level of fraud prevention and detection success we originally saw in the US.

Since its initial US launch in 2007, HSBC has implemented SAS Fraud Management across the US, Europe and the Asia Pacific. Hong Kong, Philippines, Singapore, Thailand, Macau, Brunei and Sri Lanka are all now using it to protect 100 per cent of their credit card transactions in real time. HSBC UK, including First Direct and M&S Money, is using the solution to protect all of its UK credit and debit cards. With this, SAS and HSBC are now realising the original joint-development vision of an enterprise-wide risk management system.

John Foulley, head of banking financial services solutions at SAS Asia Pacific, said: Despite growing investment in fraud prevention in Asia Pacific, card fraud is a growing issue and fraud schemes are becoming increasingly sophisticated. Common issues in this region are application, identity and card fraud. The challenge is for banks to ensure they have dynamic and integrated fraud detection mechanisms in place that are geo-specific. 


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