SAN JOSE, Calif.
March 19, 2013
(NYSE: FICO), a leading
and decision management software company, today released data showing which states were hardest hit by ATM compromises across the U.S. last year. FICO Labs data also showed that 20 states saw an increase in credit card fraud, including several along the East Coast.
An interactive map showing debit card and credit card fraud trends is available at
Nearly half (46 percent) of all card skimming reported by the FICO
Card Alert Service occurred at bank ATMs, while 36 percent took place at retail point-of-sale (POS) terminals, and 18 percent occurred at white-label ATMs – machines not operated by banks. These results were significantly different from the data observed in 2011, when 79 percent of skimming incidents occurred at POS terminals, due largely to a multi-state crime ring that was identified by the
FICO® Card Alert Service
"The prevailing fraud scheme has been ATM skimming because that only requires a PIN, not a signature – a finding that is clearly reflected in the map," said
, who manages the FICO Card Alert Service, which analyzes more than 65 percent of all ATM transactions in the U.S. each day. "Skimming at bank-owned ATMs and white label/off-premise ATMs increased in 2012, and
and the Northeast were hit particularly hard."
In its data concerning credit card fraud, FICO Labs found increases in 20 states, including 7 states on the East Coast:
. The state with the largest increase in credit card fraud was
, where the rate jumped nearly 26 percent.
"Fraud continues to be problematic and we must remain vigilant about protecting credit cards and bank accounts, but the good news is that innovative technologies are making it increasingly difficult to commit payment fraud," said
, FICO's fraud chief. "In the 21 years since FICO Falcon Fraud Manager brought real-time fraud detection to the marketplace, the losses on U.S. credit cards, as a percentage of credit card sales, have been cut by more than 70 percent. It's important to keep that in mind despite year-to-year fluctuations in fraud activity."
The FICO Labs research is based on debit card data from the FICO
Card Alert Service, and credit card data from the FICO
Fraud Consortium, which is used to develop models for
FICO® Falcon® Fraud Manager
. The FICO Falcon Fraud Consortium comprises data from more than 2.5 billion active credit and debit payment cards, sourced from issuers worldwide.
FICO (NYSE:FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company's groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO's innovative solutions include the FICO
Score — the standard measure of consumer credit risk in
the United States
— along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world's top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through
. Learn more at
. FICO: Make every decision count
For FICO news and media resources, visit
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company's Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO's SEC reports, including its Annual Report on Form 10-K for the year ended
September 30, 2012
and its last quarterly report on Form 10-Q for the period ended
December 31, 2012
. If any of these risks or uncertainties materializes, FICO's results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.
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