KeyBank Selects HNC's Falcon Cheque to Fight Fraud

KeyBank, a subsidiary of KeyCorp, has selected Falcon Cheque from HNC Financial Solutions, a division of HNC Software Inc, to guard its account portfolio from check fraud.

Executives from KeyBank selected the innovative check fraud detection system after their successful use of HNC's Falcon fraud detection system to protect their payment card accounts from fraud.

"We at KeyBank are continually enhancing our systems to employ the most advanced technology available in the ongoing battle against fraud," said Tom Lekan, senior vice president of KeyBank's Corporate Security. "We've been delighted with the performance of Falcon in detecting payment card fraud, and we're confident Falcon Cheque will perform equally well in detecting check fraud. Falcon Cheque furthermore complements our other initiatives underway at KeyBank to help prevent check fraud."

According to the National Check Fraud Center in Charleston, S.C., check fraud and counterfeiting are among the fastest-growing problems affecting the nation's financial system, producing estimated losses of $10 billion annually. According to a recent report issued by American Banker, losses from check fraud are estimated to grow by 2.5 percent annually over the next few years.

Falcon Cheque runs in the bank's check processing center and uses neural networks and HNC's proprietary behavior profiling technology to uncover fraud on all types of check transactions, including savings account, ATM, ACH, and on-line banking. The system can address in-stream, off-line batch, and real-time processing paths. When suspect-check data is uncovered, it is routed to the bank's existing remedy systems. Falcon Cheque is delivered with an algorithm for bottom-line return optimization, ranking out-sorted fraud cases in the order of potential dollars saved.

"KeyBank is an acknowledged leader in developing progressive strategies and processes for fraud prevention," said Michael Chiappetta, group vice president of risk management solutions for HNC Financial Solutions. "We're pleased KeyBank has chosen to expand its relationship with HNC in order to protect its account holders from check fraud."

About KeyCorp

KeyCorp is one of the nation's largest multi-line financial services corporations, with assets of approximately $85 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. The company's businesses deliver their products and services through facilities located in 46 states; a network of about 2,500 ATMs; telephone banking centers; and a robust Web site, www.key.com that provides account access and financial products 24 hours a day.

About HNC Financial Solutions

HNC Financial Solutions, a division of HNC Software Inc, is a leader in the development of intelligent customer value management software solutions for the financial services and e-commerce industries. Its powerful suite of real-time decision platforms and predictive business solutions allows firms to automate new account decisioning, optimize marketing efforts, detect fraud, predict profitability, and manage the customer lifecycle. HNC Financial Solutions supports this suite of solutions with a full range of consulting services.

About HNC Software Inc

Headquartered in San Diego, HNC Software Inc is a leading provider of predictive software solutions for the financial, insurance, telecommunications, and e-commerce service industries. HNC's suite of predictive software solutions can provide real-time insight into customer relationships based on transaction-level data, helping companies manage their relationships with individual customers. By accurately predicting customer behaviors, these companies can create initiatives to mitigate risk and attrition; improve customer service; develop marketing programs to enhance profitability; and detect fraudulent customer transactions. For more information, visit HNC's Web site at www.hnc.com or contact Melinda Bateman, HNC Software Inc, 5935 Cornerstone Court West, San Diego, CA 92121, 858-799-3880.

Contact HNC Software, Melinda Bateman, 858-799-3880, mb@hnc.com.