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Fair Isaac's Falcon ID Delivers New Level of Identity Theft Protection Across Industries

Advanced Solution Combines Unique Data Sources with Proven Analytics and Case Management to Give Customers Powerful Protection against ID Fraud

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 3, 2004-- Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision technology, today announced the launch of Falcon(TM) ID, an enhanced identity fraud detection solution fueled by Fair Isaac's industry-leading predictive analytics and multiple sources of identity-validating data. The solution leverages and expands upon Fair Isaac's established global technology leadership in fraud and ID fraud detection and control.
Falcon ID delivers a comprehensive and proven approach to preventing identity fraud, reducing losses and protecting consumers for any industry in which identity verification is critical -- including financial services, retail credit, telecommunications, healthcare, insurance and mortgage lending. It enables businesses to achieve new levels of effective identity theft detection by applying an unprecedented depth of predictive data from both internal and external sources, and delivers real-time determination of identity fraud risk while clearing away suspicion of genuine customers.

"Falcon ID represents very good news for businesses in many industries that are working to protect their customers from identity fraud, and very bad news for their common enemy, the perpetrators of ID fraud," said Ted Crooks, vice president of Identity Protection Solutions at Fair Isaac. "Fair Isaac's proven analytics, unique mix of data sources and efficient tools for human reviewers combine to create an unprecedented value proposition. We are positioned well to answer the call from financial services, retail, telecommunications, and other industries for a precise, accurate and all-encompassing identity fraud solution."

Falcon ID's unique capabilities include the real-time sharing of critical information between companies in the same industry -- and across different industries -- to detect when an identity is compromised. This most sensitive detection is coupled with an efficient case management capability to enable manual review of risky accounts with the lowest false positives in the industry.

It also provides organizations with cost savings and more control over their data investments by enabling them to buy only the types and amounts of data that match their specific fraud detection requirements. Decisions about when and which data to obtain are made on a case-by-case basis in real time using the industry's best neural network technology and cost/benefit analysis.

Falcon ID evaluates transactions throughout the customer lifecycle, and detects identity fraud at any point where an identity is susceptible to compromise -- including the points of application, account activation, account management and even during collections. It also can be used to evaluate and manage account decisions when consumers initiate account actions such as a change of address or a new telephone line. In addition, Falcon ID features a sophisticated case management system and authentication interview service that helps facilitate investigation when an identity compromise is detected.

Falcon ID is cost-effective and easy to implement because it builds upon and integrates with existing infrastructure and technology investments. It can be easily integrated with other Fair Isaac solutions, such as Falcon(TM) Fraud Manager, TRIAD(TM) adaptive control system, Capstone(R) Decision Manager, LiquidCredit(R) service for Telecom and Fraud Analytics for Telecom. Current Falcon users can realize significant savings, as Falcon ID uses Falcon's existing transaction environment. Falcon ID also can be integrated with solutions from other providers, and can be completely customized to meet each user's unique business objectives. It may be installed as an ASP service or at the client's site.

Falcon ID also offers Real-Time Collaboration, which enables the anonymous sharing of suspicious activity between businesses and industries in a secure, real-time environment. For example, a business evaluating a new credit application can now evaluate that application armed with insight into suspicious activity identified in other businesses across industries. The resulting broader view of potential fraud linked to an identity provides a powerful tool for determining the likelihood of fraud in a current activity.

Building upon Fraud Leadership

Fair Isaac's Falcon Fraud Manager is the industry-standard solution in payment card fraud detection, protecting 85 percent of U.S. -- and 65 percent of the world's -- active payment card accounts. Its neural network models have proven unmatched in detecting payment card fraud. The company offers an extension of the Falcon models specifically for identity fraud indication that analyzes payment card transactions and detects identity theft-related fraudulent transactions. Businesses can use this distinction to apply investigative techniques unique to identity theft fraud cases, thus effectively preventing losses from both accounts opened fraudulently and takeovers of established accounts.

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 powers billions of 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, including statements regarding its Falcon ID product offering and the benefits to be derived from this offering, 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 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 offering, the risks that customers will not perceive material benefits from the offering, failure of the product to deliver the expected results, the possibility of errors or defects in the offering, regulatory changes applicable to the use of consumer credit and other data, 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, 2003, and quarterly report on Form 10-Q for the period ended March 31, 2004. Forward-looking statements should be considered with caution. 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, TRIAD, 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.

Contacts


Fair Isaac
Megan Forrester, 800-213-5542 (Investors & Analysts)
investor@fairisaac.com
Angela Carlson, 415-492-5373 (Media)
acarlson@fairisaac.com
or
LATITUDE for Fair Isaac
Susan Donahue, 617-731-1478
sdonahue@latitude-c.com

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