Clairmail Fraud Solution

The Challenge: Fraud Losses Harm Financial Institutions and their Customers

U.S. consumers and financial institutions (FIs) suffered over $37 billion in fraud losses in 2010, with over 8 million Americans falling victim to card-related identity fraud. Fraud poses numerous long-term consequences for FIs. Most notably, it negatively impacts customer churn rates, since fraud victims commonly switch FIs after a fraud event. The FI itself suffers significant reputational loss when fraud-related crimes receive media exposure, even when the incident is a false positive.

The anytime, anywhere nature of the mobile channel provides a level of availability and immediacy not attainable with traditional banking channels, and makes it an ideal vehicle to proactively deliver mobile fraud alerts to FI customers. According to Javelin Strategy and Research, FIs that use the mobile channel to combat fraud can experience up to a 50 percent reduction in fraud losses.

But which solution will empower FIs to leverage the full potential of mobile to combat fraud?

The Answer: Clairmail Fraud Solution

The Clairmail Fraud Solution empowers FIs to proactively generate and send real-time mobile fraud alerts to their customers and enable them to instantly take action by replying. By immediately notifying FI customers of any potentially fraudulent activity, changes or transactions, the Clairmail Fraud Solution enables them to swiftly identify and resolve fraud incidents and to quickly detect false positives. The Clairmail solution creates an active partnership with bank customers in fighting fraud across multiple products – such as Checking Accounts, Cards, Online Banking and Business Services – and accelerates the identification of compromises across multiple servicing channels.

The Clairmail Fraud Solution does not displace the fraud management and detection systems currently in place at FIs. Rather, it accelerates the identification and resolution of potentially fraudulent transactions which are either customer-defined (e.g. triggered by customer-specified alert preferences) or FI-defined (e.g., detected by the FI's fraud analytic system based on the FI's business rules).

Thanks to the Clairmail Fraud Solution, FIs can leverage the mobile channel to effectively identify initial fraud incidents, resolve compromises and mitigate recurring fraudulent activities, all of which lead to reduced fraud losses for both FIs and their customers.

Fraud Solution Package

The Clairmail Fraud Solution Package includes the following elements:

• Alert Bundles: Alert definitions and templates for the most common account and transactional activities that need monitoring, based on FI business rules and customer preferences. Custom alerts can be built specific to the FI's environment.
• Workflows: Can be customized by both FIs and customers with the workflow engine in the Clairmail platform to ensure alignment with the existing fraud management ecosystem.
• Any Channel Enrollment: Clairmail enables customers to enroll for mobile fraud alerts via any customer service channel, including online enrollment, mobile web, Smart Client applications (for iPhone, Android and BlackBerry smartphones) and through assistance from customer service representatives.
• Connectors: Integrate with the FI's back-end systems, including the card processing system, fraud analytics, case management, call center and IVR systems. Connectors can be customized to fit the FI's existing ecosystem.
• Reports: Enables FIs to view a variety of report metrics, including customers enrolled in fraud alerts, alerts sent per customer by time period, respondents for each response option, and the state (e.g., responded, expired or open) of each alert.