Fair Isaac Delivers Complete Range of ID Theft and Fraud Protection for Financial Services and...

Business Editors/High-Tech Writers

SAN RAFAEL, Calif.--(BUSINESS WIRE)--Sept. 25, 2003

Solutions Suite from Market Leader in Fraud Detection Effectively

Detects Fraudulent Applications and ID Theft-Related

Fraudulent Transactions

Fair Isaac Corporation

(NYSE:FIC), the leading provider of analytics and decision technology, today announced the availability of a complete suite of identity theft solutions that help financial services institutions and telecommunications providers effectively stem application fraud and account takeovers before major losses occur.

Identity theft is a growing problem that costs credit grantors billions of dollars in losses annually. A recent study by the Federal Trade Commission estimates that in the past year, approximately 10 million consumers were victims of identity theft, costing businesses and consumers $47 billion in losses. Integrating Fair Isaac's Application Fraud Models into the loan origination process and the company's new Falcon(TM) Fraud Manager identity fraud solution into the transaction authorization process can significantly reduce fraud losses and strengthen the bottom line.

"Identity fraud is on pace to become a huge problem for the U.S. financial services industry," says Dennis Behrman, Research Analyst in the Retail Customer Strategies Group at Financial Insights, an IDC company. "With identity theft, institutions not only absorb the direct fraud loss, but it also costs them at points throughout the customer lifecycle in terms of wasted collections costs and loan loss provisioning. Fair Isaac is one of just a few providers in the position to help institutions solve this problem."

"For credit grantors combating ID theft, detecting and preventing application fraud and account takeover cost-effectively and without negatively impacting legitimate customers is critical to maintaining profitability," said Steve Platt, vice president of Global Fraud Solutions at Fair Isaac. "As the global leader in predictive analytics, Fair Isaac's solutions suite leverages our expertise in successfully protecting 450 million accounts worldwide from fraud to provide best-in-class identity theft protection not only during the application process, but throughout the customer lifecycle."

Application Fraud Detection

Fair Isaac's Application Fraud Models are configured specifically for a business based on its internal data, as well as various external data sources that are effective in predicting the likelihood of identity fraud. In addition, Fair Isaac's cross-industry consortium data, representing industry-wide application fraud data, can be used to augment the model.

Credit grantors can integrate the Application Fraud Models with their existing origination solution, such as Fair Isaac's Capstone(R) Decision Manager and LiquidCredit(R) service, to quickly and accurately quantify the identity fraud risk posed during the application process and decrease acquisition costs and fraud-related losses. A large retail card issuer recently implemented a Fair Isaac Application Fraud Model via Capstone to detect and stop application fraud in real time at the point-of-sale.

Transaction Fraud Detection

Fair Isaac's Falcon Fraud Manager is the industry-standard solution in payment card fraud detection, protecting 65 percent of the world's credit cards. Its neural network models reliably identify various types of fraud. The company offers a new extension of the Falcon suite to detect identity theft-related fraudulent transactions. Financial institutions can use this new capability to apply investigative techniques unique to identity theft fraud cases, thus effectively preventing losses from accounts opened fraudulently and account takeover fraud.

Telecom Fraud Detection

LiquidCredit service for Telecom is Fair Isaac's solution that combines proven decisioning technology and custom interfaces to help telecommunication carriers consistently execute their credit and fraud policies by determining the risk of each application and providing the right decision in real time. The service validates the data, utilizing information from third-party data providers, evaluates the application according to the pre-defined decisioning criteria, and returns an accept/decline decision in real time.

Fair Isaac also offers Fraud Consulting services to help credit grantors protect themselves and their customers from identity fraud through implementation of best practice operational processes. The company has already successfully engaged with multiple customers to significantly reduce their identity fraud losses.

Fair Isaac's identity theft solutions are in use at leading financial services institutions, telecom service providers and retailers. Results demonstrate as much as a 60 percent improvement in the detection of identity theft-related fraud.

About Fair Isaac

Fair Isaac Corporation (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power more than 25 billion mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations, and government agencies. Through the www.myfico.com Web site, consumers use the company's FICO(R) scores, the standard measure of credit risk, to manage their financial health. For more information, visit www.fairisaac.com.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements about the benefits to be derived from its Application Fraud Models, Falcon Fraud Manager and LiquidCredit service for Telecom offerings, are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation use and functionality of the offerings, market acceptance of the offerings, the risks that customers will not perceive material benefits from the offerings, failure of the products to deliver the expected results, the possibility of errors or defects in the offerings, the company's ability to recruit and retain key technical and managerial personnel, the maintenance of its existing relationships with key alliance partners, competition, regulatory changes applicable to the use of consumer credit and other data, a lengthy sales cycle for our products, and other risks described from time to time in Fair Isaac's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2002, and Form 10-Q for the period ended June 30, 2003. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac's results could differ materially from Fair Isaac's expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.

Fair Isaac, Falcon, Capstone, LiquidCredit and FICO are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be the trademarks of their respective owners.