Australian Treasurer Peter Costello recently told Parliament that National Australia Bank was actually the first bank in the world to uncover the fraud.
"It was the NAB that uncovered this fraud out of all the domestic and international banks of the world and reported it to MasterCard and Visa in September 2004," said Costello.
In his report, Costello specifically highlighted the risk of the CardSystems breach to all Australians who had either traveled to the U.S. or used their credit cards to buy goods online from America.
National Australia Bank uses Proactive Risk Manager to score and monitor all aspects of fraudulent activity involving lost, stolen or counterfeit cards as well as skimming and other types of fraud. The software combines the power of expertly defined rules with a customized neural network model for fast, accurate and flexible response to card fraud. Through its patented technology, the product compares the characteristics of each transaction with the custom fraud model and recorded patterns of behavior for each cardholder. It then assesses and scores the risk for each transaction and sends alerts to reviewers. Users like NAB can develop their own rules and can update models in-house as often as necessary.
Prior to licensing the ACI solution in June 2000, the bank used a largely manual system to detect fraud. Derren Jones, who manages fraud operations for NAB, said "Australia is not suffering significant amounts of credit card fraud, yet geographically we sit on the cusp of one of the major centers of fraud in Southeast Asia."
"Proactive Risk Manager provides us with the ability to closely monitor our cardholder's transaction patterns as they happen and, at the same time, gives us unfettered access to historic transaction data," said Jones. "These features, combined with our skilled staff, enable us to detect fraud early and to take effective counter-measures to protect the bank and its customers."
About National Australia Bank
National Australia Bank is an international financial services organisation that provides a comprehensive and integrated range of financial products and services.
The National traces its history back to the establishment of The National Bank of Australasia in 1858. National Australia Bank Limited is a public limited company, incorporated in Australia on June 23, 1893 and now operates the retail bank brands of the National Australia Bank (Australia), MLC (wealth management services), Bank of New Zealand (New Zealand), Yorkshire Bank, Clydesdale Bank and Northern Bank (United Kingdom).