Bank Mandiri Strengthens Digital Banking Security in Indonesia, Cuts Fraud 80%

Bank Mandiri, Indonesia's largest financial institution, is using the industry-leading capabilities of FICO® Falcon® Fraud Manager and the FICO® Falcon® Intelligence Network to safeguard all transactions across its retail channels, including booming digital platforms in a continuously evolving fraud landscape.

In 2022, FICO's fraud solutions safeguarded over 1.64 billion financial transactions valued at US$156 billion on Bank Mandiri's Livin' mobile banking app, amidst a staggering 50% year-over-year growth. This substantial investment in enterprise-wide fraud protection reaped significant rewards. Fraud losses on the app decreased by 85% from January to August 2023 compared to the previous year. Across credit and debit cards, fraud losses fell by 77% in 2022.

"The boom in ecommerce and digital banking services in Indonesia post-pandemic, coupled with the expanding economy, has been remarkable," said Adityo Wicaksono, Senior Vice President Retail Product Delivery & Fraud Risk Group, Bank Mandiri. "Maintaining customer trust and experience through a comprehensive digital transformation strategy is imperative for us. FICO's solutions help us to stay ahead of fraudulent actors, so we can focus on delivering exceptional digital banking services for our customers."

You can read more about this story in the full media release.

Fighting Changing Threats

When Bank Mandiri implemented Falcon Fraud Manager, it did not just benefit from FICO's partnership, expertise, technology platform, and fraud models. It also leveraged FICO's global fraud data consortium, the FICO Falcon Intelligence Network.

The Falcon Intelligence Network is a unique consortium at the core of FICO's ability to innovate. More than 10,000 financial institutions worldwide provide anonymized, tagged data for monetary and non-monetary transactions, which FICO then uses to train and improve powerful fraud-fighting AI and machine learning-powered models.

"The consortium data allows us to stay ahead of emerging fraud trends," said Wicaksono. "After the implementation of fraud models and intelligence derived from the consortium, we were able to achieve immediate, impressive reductions in credit and debit card fraud effectively without having to design new fraud models from scratch. We are now ourselves a contributor to the consortium."

A Robust But Agile System

Bank Mandiri's digital transformation drive in 2023 saw the creation of over 30 new mobile banking features, including Paylater and the New Branch Delivery System (NBDS), enhancing customer experiences with Livin' by Mandiri. Partnering with FICO enabled seamless integration of these innovations into its fraud protection solutions, demonstrating FICO's agility and scalability.

"The rapid integration of existing and new channels along with the hundred newly integrated features demonstrate that FICO's solution can meet the challenge of simplifying the integration process within Bank Mandiri's complex system architecture and high volume of transactions," added Wicaksono.

Battle Against Scams

Bank Mandiri and FICO are currently collaborating on the escalating threat of scams. With the rise of Authorized Push Payment (APP) fraud both globally and in Indonesia, there's an urgent need for robust fraud prevention measures.

"We are encouraged by the results we're witnessing, mirroring the success seen by FICO's other clients," concluded Wicaksono. "FICO's scam detection model, combined with targeted profiling and the retail banking payments model, has proven highly effective. This approach has enabled Mandiri to detect a significantly higher number of scam transactions, all while maintaining a sub-1% transaction review rate."

For its achievements, Bank Mandiri won a 2024 FICO® Decisions Award for Fraud Management.

"Mandiri impressed the judges with its belief in a data-driven ethos, using advanced analytics and insights to optimize fraud detection and underpin its digital progress and ambitions," said Paul Mah, senior editor, CDO Trends and one of the FICO Decisions Awards judges.

To see the full list of 2024 FICO Decisions Awards winners, check out: https://www.fico.com/en/decisionsawards

How FICO Can Help You Stop More Fraud

• Explore how FICO helps fight fraud, regardless of channel or portfolio.
• Get details about the FICO® Falcon® Intelligence Network
• Customer Communications Services for Fraud engages customers in real time to fight card and CNP fraud.