fbpx Skip to content

Fortune 100 Financial Institution Investigates Significant FICO Score Drop as Potential Fraud

Financial institutions spend enormous amounts of time and money identifying, mitigating and combating systemic fraud. With vast amounts of information being analyzed to help fight credit card and debit card fraud, it can often be challenging to know exactly which data point to track during a specific time period to signal potential fraud. Today’s story shows how a large US-based financial institution discovered significant month-over-month drops in the FICO score of a specific acquiring bank ID.

Outlier’s Automated Business Analysis platform identified a monthly decrease in the FICO score for a specific acquiring bank ID at a large financial institution. Acquiring banks process credit card and debit card transactions. They are frequently liable for fraud if the merchant of the fraudulent transaction is a fake merchant created by fraudsters attempting to monetize credit and debit card transactions. Drops in FICO scores are generally concerning and definitely an identifier for potential fraud.

Fortune 100 Financial Institution Investigates Significant FICO Score Drop as Potential Fraud
Fortune 100 Financial Institution Investigates Significant FICO Score Drop as Potential Fraud

Reading How Outlier Discovers a Significant Drop in the FICO Score of an Acquiring Bank

Outlier identified a significant FICO score drop month-over-month for a specific acquiring bank. The score had previously held steady, but then began to drop significantly month-over-month for several months. The business stakeholders reacted to this story with curiosity due to the large drop in FICO score that is well outside the typical FICO score range.

This Outlier story led them to investigate why a certain Point of Sale (POS) terminal had a transaction amount below the normal range and whether or not that signaled fraudulent behavior at that acquiring bank. Additionally, Outlier’s Root Cause feature revealed how a certain category of merchants, Taxicabs and Limousines, and specifically, an international rideshare service fueled this decline. If Outlier had not identified this story, the customer would not be aware of these large month-over-month decreases in the FICO score of the specific acquiring bank. Outlier’s identification of this FICO score trend helped to further highlight the value that Outlier provides to this financial institution and their fraud analyst teams as they work to combat systemic credit and debit card fraud.

You too can identify meaningful trends in your business data with Outlier. Outlier empowers businesses to take a deeper look at their data and uncover unexpected trends quickly. Sign up for a custom demo to see how a large financial institution relies on Outlier insights to help their business.