"We knew our fraud analysts were finding activity — primarily subscription and premium rate fraud — but not as quickly as we would like," explains Steve Fisher, NTL's Head of Fraud and Investigations.

The challenge was increased due to NTL's rapid acquisitions. "Within a 15-month timeframe, we had acquired 11 companies. Some had no fraud detection system. Some were only using passive reports. A few had fraud detection software. None of them used the same products," notes Fisher.

NTL determined they needed a fraud detection system that used neural networks to monitor the 1 billion plus call records routed through the company each month. "The faster and more accurately you catch fraud, the more money you save," notes Fisher. "We wanted a system capable of detecting unusual activity more quickly so we could minimize our losses. Our fraud analysts needed to focus on the largest fraud cases by having them automatically queued to the top."

Expanding business increases fraud challenges

NTL also needed a product that was capable of expanding with the needs of the business, in terms of call volume as well as product types, such as VoIP (voice over Internet protocol). In addition, NTL wanted to form a strategic relationship with the company they chose, actively seeking one with a rich history and leadership role in successfully detecting fraud. Extensive customer service and technical support expertise also topped the list of the company's selection criteria.

One company that NTL had acquired, Cable & Wireless Communications, had fraud detection capabilities that impressed NTL. The acquired company had been using Fair Isaac's Fraud Manager for Telecommunications fraud detection solution for years. Fair Isaac's customer service and technical support experts soon impressed NTL too.

"Fair Isaac has been exemplary from the beginning, coming across as very professional, very keen to help," notes Nigel Milchem, NTL's Group Director for Risk Assurance. Within months, the Fraud Manager system was implemented across NTL and effectively monitoring residential and business call detail records for fraudulent activity. "The integration of Fraud Manager with our current technology was quite easy. We have several different types of switches, but Fair Isaac was able to overcome all of our challenges.

"The stability and performance of Fraud Manager has met NTL's high expectations," notes Milchem. "The software's neural networks have proven successful in bringing the most likely fraudulent cases to the forefront. Further, NTL has found Fraud Manager to be versatile and flexible in addressing our specific fraud challenges."

ROI in four months

The Fraud Manager for Telecommunications installation had a direct impact on the company's bottom line, with a return on our investment in just four months. "It has already paid for itself through the fraud that we have averted," Fisher said.

The company is also running more efficiently by reducing the need for fraud analysts, generating cost savings to the company in excess of $750,000 per year. Awareness and education of fraud has been raised significantly throughout the entire organization.

The Fair Isaac post implementation review helped NTL optimize efficiency by further reducing the number of fraud analysts needed and by improving the false positive ratio (the number of flagged accounts that are non-fraudulent).

"Unforeseen benefits have accrued," Milchem added. "For example the product is being used as a value-added tool to both attract and retain business customers in a very competitive marketplace."

For more information, contact your Fair Isaac representative or email info@fairisaac.com.