Emerging Technologies

Order Form

    This individual Report Under the Hood: Card Fraud Detection and the Role of Predictive Analytics is available for purchase. This Report is available to members of Mercator Advisory Group’s Emerging Technologies Advisory Service. Please be advised that this Report is normally part of a research and advisory service that provides ongoing support throughout the year. As such, this Report contains significant depth of content that is selected for its strategic importance to our members. (For a description of these services, see our Advisory Services section).

    While the Report represents significant analyst time invested, there is no means of our ascertaining if it will fully meet your specific intended purposes. Typically, these Reports form the basis for future discussions with our clients where we are able to fine-tune additional information that we have gathered in the construction of the series of Reports (or locate new information rapidly due to our exclusive focus on gathering information in the payments industry) for specific member needs.

    Unfortunately, in fairness to our paying members, we are not able to offer this level of support for a single Report purchase. We will, however, credit any Research Document purchase against the future purchase price of the service should you become a member within 30 days of purchasing the document.

    The price for individual Report purchases is $2950 per document. 


    Use the form below to request this individual Report purchase or

    Click here for a fax-back order form




Under the Hood: Card Fraud Detection and the Role of Predictive Analytics

Boston, MA
August 2004

Under the Hood:  Card Fraud Detection and the Role of Predictive Analytics

Previous Mercator Advisory Group research has investigated the myriad solutions to the problem of authenticating both the cardholder and the merchant in an online environment.  But what if the authentication method has successfully been navigated by a fraudster -- what then?

The hub of the report is fraud detection; stopping fraud 'in-flight'.  The use of predictive analytics is at the core of this; building models based on a wide variety of factors to detect anomalous events in a transaction.  The science is a fascinating one, applying the principles behind artificial intelligence to solve present day issues.  Central to this are neural networks.

One of Thirteen Exhibits included in this report

Nick Holland, Director of the Emerging Technologies Advisory Service and co-author of the report sees the power of fraud detection to be part of a holistic risk management strategy:

"It's safe to assume that fraud will never go away and that we will see ever more dubious and audacious fraud schemes as new electronic payment paradigms such as contactless cards and mobile payments come of age.  But the combination of preventative and detective tools coupled with intelligent human decisioning goes a long way towards 'cramping the fraudster's style'"

Hightlights of the report include...

  • Coverage of the major sources of fraud and their individual characteristics
  • A section on the way that fraud evolves including a case study on 'phishing'
  • Analysis of fraud countermeasures for prevention and detection in both the online and physical world
  • In-depth explaination of the scientific principles behind predictive analytic solutions, with specific reference to neural networks
  • Examples of fraud detection solutions from some of the major providers including ACI Worldwide, Fair Isaac, Retail Decisions(ReD), ID Analytics and CyberSource, including schematics of fraud detection architecture.

The report contains 13 exhibits and is 31 pages.

Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits. Please visit us online at www.mercatoradvisorygroup.com.

For more information call Mercator Advisory Group's main line: 508-845-5400 or send email to info@mercatoradvisorygroup.com.