August 31, 2004

Disbank Defends Against Fraud Turkish bank battles credit card fraud in growing market.

To address growing credit card fraud, Disbank, located in Istanbul, Turkey, implemented KXEN's (San Francisco) Analytic Framework predictive and descriptive analytic software. As a result of the implementation, the bank has increased the number of fraudulent credit card applications that it identifies by 200 percent - resulting in a savings of $25,000 per day, according to KXEN.

The KXEN solution provided results almost immediately. "The solution increased the amount of fraud applications determined by fourfold, starting from the date of deployment," says Taner Ayhan, vice president, alternative distribution channels, Disbank.

Prior to rolling out the KXEN solution, the bank relied on a manual process to determine fraudulent applications. But Disbank could not keep up with ballooning application volume. "The bank was using manual methods for determining fraudulent applications," Ayhan says. "However, as the number of applications increased together with the market share, effectiveness became an issue," he adds.

The bank first sought a solution in February 2004. The project started in early April and went live in less than 30 days.

Following the success of the credit card application fraud prevention solution, the bank turned to KXEN for a real-time credit card transactions monitoring solution. Today, Ayhan relates, Disbank has a system that can individually score each transaction against the likelihood of fraud in seconds.