HSBC To Fight Card Frauds With SAS Solution

by Sunil Kumar    Sep 08, 2005

SAS and HSBC Holdings plc, a global banking and financial services organization, have recently announced a long-term partnership to transform the payment card fraud detection market, with HSBC deploying a solution from SAS.

In an exclusive to CXOtoday, Sudipta K. Sen, managing director and CEO, SAS Institue (India) Pvt. Ltd. said, “The solution is based on the SAS 9 architecture. HSBC will be the first customer and first production implementation of the solution, so they will have the first version (1.1 or higher) of the solution.”

“The solution will be integrated with HSBC’s credit card authorization and processing platforms in a variety of HSBC data centers around the world. Some of those data centers support multiple geographic regions, so within a data center, the solution is centralized, but across HSBC, the solution is distributed,” he added.

According to Sen, “HSBC has a wide variety of staffing levels around the globe and the system will be implemented in HSBC’s major data centers located in North America, UK, and Hong Kong. However, right now the solution will not be integrated across data centers.”

Sharing some details of the solution, he said, “The system is designed for hundreds of analysts to have access at any given time. In addition to providing a flexible queuing and rules environment, the solution also utilizes advanced analytic models built by SAS which are based on extensive SAS R&D work.”

The project is expected to lower the operational costs of fighting fraud thus creating a more flexible fraud platform so that HSBC can respond faster to new threats as they arise.
With a credit and debit card portfolio of well over 100 million cards, HSBC is one of the world’s largest plastic card issuers.

In terms of the hardware architecture, he said, “The initial solution resides on a combination of platforms as part of the components are mainframe based and part of the components are Unix based. All of the user interfaces are browser-based (”zero footprint”) applications.”

“We chose to work with SAS primarily because of its technology assets, extensive R&D capability and industry leadership, and its ability to support us across the globe,” commented Siddharth N. Mehta, chief executive officer at HSBC North America Holdings Inc. SAS and HSBC are also co-operating on developing a strategy to extend the technology into other transaction monitoring applications.

Each year banks and financial organizations across the world lose more than $2 billion annually to payment card frauds. Over the last decade, as banks have developed improved processes and systems to identify and stop fraud, fraudsters too have adapted new means.