Customized fraud-detection technology will help defense officials deter misuse of purchase cards among employees and vendors.
Throughout the U.S. Department of Defense (DoD), a Purchase Card Program enables authorized DoD personnel to purchase certain goods and services, such as office supplies and equipment, directly from private-sector vendors. This particular program is one of several charge-card programs that the DoD operates to streamline business processes and reduce administrative costs.
To combat misuse of the Purchase Card Program, including cardholder and vendor fraud, DoD officials recently selected Minneapolis-based Fair Isaac Corp. to provide an anti-fraud solution. Under terms of the agreement, Fair Isaac’s subsidiary, HNC Software LLC, will deliver custom-modified Falcon Fraud Manager technology to improve compliance of purchase-card policies and increase savings for the DoD.
The anti-fraud solution will analyze each authorization transaction using DoD-specific risk indicators. By leveraging custom predictive models developed specifically for the DoD’s-card program as well as account profiling technologies and sophisticated case management, the analytic solution will quickly and reliably identify at-risk transactions and generate a risk score.
Based on scoring thresholds and flexible, user-defined rules, a transaction will be referred for further evaluation. Periodic audits and risk assessments will help the DoD identify and keep ahead of emerging new schemes for misuse of the purchase cards.
"We welcome the opportunity to work with the DoD in establishing effective fraud detection and prevention practices that will further streamline its operations for even greater control over fraud and abuse," said John McDowell, Vice President of Government Solutions at Fair Isaac.
For more information about Fair Isaac’s solutions and technologies, designed to reduce fraud losses, manage credit risk and meet regulatory demands, visit http://www.fairisaac.com/.