FICO, the provider of the ubiquitous credit score, last week said its FICO Labs was awarded eight new patents by the U.S. Patent and Trademark Office covering credit score interpretation, fraud detection, credit line optimization and other analytics.
The company, formerly Fair Isaac & Co., on May 4 received a patent for a credit score estimation system that helps consumers understand their credit scores and how to take action to improve their credit scores. The invention includes a score estimating tool, a best action simulation tool, an easy error correction tool, and a score improvement tool. This technology is behind the FICO Score Estimator.
Three new patents address the problem of fraud and were developed to be part of the FICO Falcon Fraud Manager system, which protects some 65% of the world’s credit cards. The first provides a method for determining whether applications for credit originate from legitimate applicants or fraudsters. The second patent is for a system that will help detect and take action on mass compromise of ATMs. The system analyzes clusters of compromised cards, and will help card issuers improve block-and-reissue strategies. The third fraud patent was awarded for a mechanism that finds possible fraudulent transactions and also identifies potential fraud based on specific credit account data.
FICO also was awarded a patent for a new method for simulating an analytic value chain. The invention uses analytics to determine how to optimize the profit of a portfolio of credit accounts by selectively extending credit line increases to individuals, based on simulation and development of “learning strategies.”
FICO’s other new patents are for a system that enables the configurable exchange of messages between software applications, and for a decision engine.