IBM Software Fights Financial Fraud At MoneyGram

by Tom Groenfeldt, forbes.com

In the first week after MoneyGram International implemented IBM software, called Identity Insight, to detect and prevent fraudulent transactions, the program stopped $1 million in fraud. Over the course of its first year of operations, it stopped $60 million in fraudulent transactions. The service allows users to send money almost anywhere in the world and to pay bills. It has a global network of more than 310,000 agent locations – including retailers, international post offices and financial institutions – in 198 countries and territories.

Ted Bridenstine, senior manager for systems development at MoneyGram International, said the company worked with IBM for two year to develop the program to meet the money transfer company’s specific needs. The IBM system replaced BAE Systems ‘ Detica NetReveal. MoneyGram.

Bridenstine said that MoneyGram’s fraud program is now so effective that fraudsters are asking people to use Western Union when they make their calls pretending to be a relative in need of immediate cash. MoneyGram is also using the software to detect agents who might be participating in fraud.