Turkish lender achieves one of the best fraud ratios among Turkish banks by incorporating custom machine learning scores with FICO® Falcon® Fraud Manager

ISTANBUL, January 30, 2025--(BUSINESS WIRE)--FICO (NYSE: FICO)

Highlights:

• Yapı Kredi reduced fraud losses by 98.7% over seven years, using FICO® Falcon® Fraud Manager.
• The bank maintains Turkiye’s lowest card fraud basis point ratio—50% lower than peers.
• Yapı Kredi analyzes 40 million transactions each day, detecting 500 potential fraud cases.
• Yapı Kredi has won a 2025 FICO® Decision Award for Fraud Management.

Turkiye’s Yapı Kredi (YKB) has harnessed the power of FICO’s advanced fraud detection technologies including FICO® Falcon® Fraud Manager to achieve a remarkable 98.7% reduction in fraud losses over seven years. Despite doubling its banking transaction volumes, YKB has maintained one of Turkiye’s lowest fraud ratios among top banks. This success stems from integrating custom data and scores alongside the machine learning models within FICO Falcon Fraud Manager.

More information: https://www.fico.com/en/products/fico-falcon-fraud-manager

"The global economic slowdown and Turkiye's recent earthquake significantly increased transaction volumes and fraud risks," said Halis Köseoğlu, fraud prevention director at Yapı Kredi. "We expanded our analytics team, developed new fraud detection rules, and leveraged FICO Falcon Fraud Manager’s capabilities to deliver real-time fraud prevention with exceptional accuracy and efficiency."

Adapting Fraud Prevention to Emerging Payment Channels

The biggest challenge Yapı Kredi faced in evolving its fraud system was monitoring anomalies across existing and new service channels, including cryptocurrency transfers, open banking, card-to-card transfers, and request-to-pay. With 50% of Turkiye’s adult population investing in cryptocurrencies, these new payment patterns posed significant risks. To address this, Yapı Kredi extended FICO Falcon Fraud Manager’s capabilities by providing more detailed and comprehensive data inputs.

YKB’s new analytics, driven by both machine learning algorithms and precalculated enriched data, underpin more than 1,000 fraud detection rules in FICO Falcon Fraud Manager, which protects Yapı Kredi’s demand deposit accounts, credit cards, debit cards and merchants. Every day, more than 40 million monetary and non-monetary transactions are processed, with FICO Falcon Fraud Manager detecting approximately 500 potentially fraudulent activities daily. Each transaction is analyzed with remarkable efficiency, boasting an average response time of just 4 milliseconds.

Smarter Analytics, Faster Detection

"It is crucial that our systems scale effectively to meet increasing demand," said Köseoğlu. "FICO Falcon Fraud Manager can handle our volume growth, and now processes more than 40 million transactions daily. Our overall fraud system operates with a 99.98% success rate, without timeouts."

Since implementing FICO Falcon Fraud Manager in 2017, YKB’s approach has resulted in a false positive ratio of approximately 10:1— a substantial enhancement compared to the previous ratio of 30:1 and the pre-Falcon ratio of over 200:1.

According to data from the Turkish Interbank Card Centre, Yapı Kredi has one of Turkiye’s best card fraud basis point ratios, standing at less than 0.6.

"A key factor in these successes is our ability to detect and block 98% of fraud attempts using FICO Falcon Fraud Manager before any damage can occur," added Köseoğlu. "FICO’s enterprise fraud monitoring solution enables accurate, consistent decisions by analyzing customer behavior across channels and tailoring responses to transaction risks."

Yapı Kredi leverages FICO Falcon Fraud Manager to streamline fraud management across channels, including phone (IVR), SMS, email, push notifications, and mobile banking. "These integrations allow us to quickly confirm transactions based on their risk level, ensuring real-time fraud prevention and seamless customer communication," added Köseoğlu.

For its achievements, Yapı Kredi won the 2025 FICO® Decision Award for Fraud Management.

"Criminals worldwide have accelerated the evolution of their technology to commit fraud at an unprecedented scale," said Nikhil Behl, executive vice president for software at FICO. "Yapı Kredi sets a global benchmark for financial institutions with their leadership in synthesizing FICO Falcon Fraud Manager with models, custom data, and advanced analytics."

"Yapı Kredi’s achievement goes beyond fighting fraud—it’s about creating a banking environment where security enhances trust and convenience for customers," said risk analytics senior manager Regan Goble at Westpac NZ, one of the FICO Decision Awards judges and one of last year’s winners. "Their innovative use of AI and data-driven insights shows how fraud prevention can evolve into a competitive advantage."

FICO® Falcon® Fraud Manager is the world’s leading payments fraud solution, protecting some 4 billion payment accounts worldwide. It was the first fraud system to deploy AI and has evolved through dozens of patents in machine learning and other technologies.

To see the full list of 2025 FICO Decisions Awards winners, check out: https://www.fico.com/en/decisionawards

About Yapı Kredi

Yapı Kredi has been sustainably strengthening its market positioning in the sector since its establishment in 1944, through a customer-centric approach and focus on innovation. Yapı Kredi achieved total assets worth TL 2.5 trillion as of the first nine months of 2024. Constantly seeking to increase its contribution to the financing of the Turkish economy with its customer-centric approach, Yapı Kredi enlarged the volume of its total cash and non-cash loans by 52% y-o-y in the first nine months of 2024 to TL 1.7 trillion.

Learn more at https://www.yapikredi.com.tr/.

About the FICO® Decisions Awards

The FICO Decisions Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2025 judges are:

• Regan Goble, risk analytics senior manager at Westpac NZ (Previous Winner)
• Megha Kumar, research vice president at IDC
• Joe McKendrick, analyst and senior contributor at Forbes
• Luiz Pacete, technology and marketing industry influencer
• Ali Paterson, founder and editor-in-chief at Fintech Finance
• Mike Roberts, head of unsecured retail risk at HSBC UK bank (Previous Winner)
• Erin Stillwell, head of strategic partnerships and engagements at TSYS (Previous Winner)
• Allan Tan, group editor-in-chief at Cxociety

The winners of the FICO Decisions Awards will be spotlighted at and win tickets to FICO® World 2025, May 6-9, 2025, at the Diplomat Hotel in Hollywood, Florida.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.

Learn more at https://www.fico.com

FICO and Falcon are registered trademarks of Fair Isaac Corporation in the U.S. and other countries.

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Contacts

For further comment contact:
FICO UK PR Team
Wendy Harrison/Parm Heer
ficoteam@harrisonsadler.com
0208 977 9132