FRACTALS

Smart solutions for fighting fraud“Authentic and Fractals are modern, open products which come with powerful
out-of-the-box functionality.”– Cal (Israel Credit Cards Ltd.)

Staying ahead of global fraud is a never-ending battle.
As the diverse market for electronic payments grows
so does the potential for damaging fraud attacks.
Innovation in payments is matched by innovation
among fraudsters who constantly update their
methods to maximise their profits. Fraud is now aninternational business and criminal gangs seek out theweakest targets for the easiest returns.

For more information, visit us at ncr.com.

Every day, banks, payment processors and merchants
protect their customers, their reputation and theirbottom line from fraud using Fractals from NCR.

Flexible and efficient fraud detection
Fractals is a smart, self-learning fraud detection
and prevention solution. It combines self-learning
analytical models with user-defined rules to give you
an exceptionally high fraud detection rate with alow false positive ratio. Flexible, scalable and easily
configurable, it is suitable for organisations ofany size.
Fractals gives you enterprise-level fraud detection.
With Fractals you can protect all channels, all accounts
and all payment types from a single platform. You
can monitor both card-present and card-not-present
transactions. You can also assess individual transactions
as well as historical and aggregated behaviour acrossmultiple accounts or groups of accounts.
Fractals enables you to enrich your fraud screening
capabilities by incorporating data from the widest
possible range of sources. In addition to the usualtransactional information, you can include data fromother internal systems and fraud-scoring models.
Fractals also lets you take advantage of information
provided by specialist third parties, so you canvalidate the device, IP address and geo-location of
the payment source.
When deployed with Authentic or other suitablepayments processing engines, Fractals enables
real-time, in-flight fraud blocking. It also has
near real-time and batch detection modes.
You can also augment Fractals’ fraud prevention
capability by deploying MySpend from NCR, whichallows your customers to provide fast confirmation offraudulent activity from their mobile phones. Fractals
also uses Message Mapper, and its simple pointand-click configuration, to manage integration withinternal or external systems.

Smart, self-learning strategies

Fractals comprises three broad components.

Fractals Adaptive Classification Engine
Fractals’ high fraud detection rate is made possible
by its use of next-generation analytics. Using
Bayesian statistical analysis and proprietary inferencetechniques, the Adaptive Classification Engine
provides fully automated, intelligent
fraud detection.
The Adaptive Classification Engine can detect eventhe most subtle changes in fraud trends, enabling
it to identify new fraud types as soon as they areactivated and prevent them spreading further. The
Adaptive Classification Engine’s fraud model includes
strategies that self-adjust as transactions are tagged
as fraudulent, which enables it to learn new fraud
patterns as they appear.
By constantly updating themselves, these self-learningmodels enable Fractals to keep up with even themost innovative of fraudsters, while minimising input
the required from your fraud analysts. The highrates of fraud detection achieved by the AdaptiveClassification Engine also make you less dependent on
the Rules Engine.

Fraud score/Authorisation decisions

Transaction data source(e.g., authorisation system)

Third party fraud alerts

Incoming transactions

Operational database

Data input layer
Rules processing

Transaction database

ACE intelligent detection model
Alert generation

Post scoring actions

Fraud analyst processing

Fractals Rules Engine
The Fractals rules engine enables you to define therules which are used to score each transaction anddetermine whether it should be authorised, declined orreviewed.
You access the rules engine through a browser-based
interface and define, create, test, evaluate anddeploy rules without coding or programming. Fractals’
graphical rule workbench also makes it easy to express
complex and varied rules, and update them rapidly inresponse to changing threats. You can deploy new or
updated rules with immediate effect or schedule them
to be activated at a set time.
Post-scoring actions allow you to define automatic
responses according to the outcome of the Adaptive
Classification Engine or rules engine. If ‘in flight’
fraud prevention is needed, Fractals can return
the appropriate response to the requesting system.
Alternatively, Fractals can trigger an SMS message
to be sent to your customers, or change the accountstatus in your card management system to block
further transactions.

Tagging of fraudent transactions

Alert Management
Once the Adaptive Classification Engine or the rules
engine has identified a suspicious transaction, Fractals
gives your fraud analysts the following support:
Alert queue management – a flexible, configurable
mechanism for queuing alerts. Alerts can be groupedby common fraud score features, such as product typeor transaction amount. Each analyst’s queue can belinked to one or more alert groups, which provides
a high degree of configurability to meet operational
needs.
Alert handling – a browser-based interface forprocessing alerts. It provides fraud analysts withthe data and analytical tools to fully understandcardholder or merchant behaviour patterns.

“What is really different with Fractals
is that we can manage our fraud
risk exposure across mobile POS,
e-commerce, and traditional retailchannels with a single system.”– North American Bancard

Why NCR?
NCR Corporation (NYSE: NCR) is the global leader inconsumer transaction technologies, turning everyday
interactions with businesses into exceptional experiences.
With its software, hardware, and portfolio of services, NCR
enables more than 550 million transactions daily acrossretail, financial, travel, hospitality, telecom and technology,and small business. NCR solutions run the everyday
transactions that make your life easier.

NCR is headquartered in Duluth, Georgia with over 30,000
employees and does business in 180 countries. NCR is atrademark of NCR Corporation in the United States andother countries. The company encourages investors to visit
its web site which is updated regularly with financial andother important information about NCR.

Fractals at a glance:•

Industry-leading fraud detection for issuers,acquirers, PSPs, merchants and ISOs•

Transaction-level monitoring and aggregatedbehavioural analysis•

Self-learning models that continuously adjust tochanging fraud patterns•

Integrated external data including IP geo-location,
address verification and device identification•

Easily configurable rules to create bespoke risk
management strategies•

PA-DSS certified and penetration tested••

Multi-channel, multi-currency, multi-hierarchy andmulti-organisation protection

Open system providing user feedback on scoring
decisions and analysis••

Real-time transaction monitoring and in-flight
fraud prevention

Performance metrics including alert rates, casedetection rates, and false positive ratios

Fractals benefits:•

Respond quickly, easily and efficiently to changing
fraud patterns•

Shorten time to market with easy deployment andintegration•

Reduce fraud losses and protect yourcorporate reputation•

Generate cost savings and economies of scale froma single, scalable, automated solution•

Minimise false positives to maintain strongcustomer relationships•

Liberate fraud analysts to focus on alert
management and customer service•

Create bespoke, granular and targeted risk
management strategies•

Release countermeasure analysts to handle valueadded tasks such as strategy development, trend
analysis and business intelligence

NCR continually improves products as new technologies and components become available. NCR, therefore, reserves
the right to change specifications without prior notice.
All features, functions and operations described herein may not be marketed by NCR in all parts of the world. Consult
your NCR representative or NCR office for the latest information.
All brand and product names appearing in this document are trademarks, registered trademarks or service marks of
their respective holders.
© 2015 NCR Corporation		

Patents Pending

15FIN3056-F-UK-0815		

www.ncr.com