ARMONK, N.Y. & MINNEAPOLIS--(BUSINESS WIRE)--July 26, 2005--Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision technology, and IBM, the world's largest consulting services organization, today announced new services geared to help banks combat fraud at an enterprise-wide level.

The joint initiative, which aligns fraud control systems, strategies and services from IBM and Fair Isaac, is designed to assist banks in evolving their fraud management capabilities beyond point solutions that detect traditional forms of fraud at the product level or within a line of business. The increasing variety of fraud attacks often take advantage of this "siloed" approach and force banks into a reactive mode that can stretch internal resources.

"With the cost of fraud reaching well into the billions of dollars, investing in one point solution after another is no longer a viable way of managing fraud losses," said Gresh Brebach, Fair Isaac vice president of Corporate Development. "Fraudsters are well aware of the inability of many organizations to share information and resources to combat fraud across the enterprise and maneuver between silos to maximize their gain over time and through multiple accounts."

The combination of Fair Isaac's industry-leading analytic fraud management capabilities with IBM's consulting, integration and risk management services offers retail banks a powerful and comprehensive resource in the fight against the global threat of bank fraud. The new fraud assessment service, which allows banks to maximize their systems and staff investments, follows the recent launch of Fair Isaac's Falcon One(TM) system, a new enterprise software solution designed to help banks effectively combat both existing and emerging types of fraud at every point of customer interaction.

Falcon One platform's component-oriented architecture takes full advantage of IBM DB2 Universal Database and WebSphere Application Server capabilities to enable the scalability required for high-volume, high-speed transaction analysis. Establishing critical services such as this in a re-usable, platform independent way using IBM's middleware aligns with IBM's recommended practice of moving to a Service Oriented Architecture.

"TowerGroup believes the IBM and Fair Isaac partnership will serve as an important driver of enterprise fraud management implementations, with both companies benefiting substantially from the union," said Virginia Garcia, Research Director, Financial Services Strategies, TowerGroup. "Falcon One brings to the table common case management, workflow, and real-time and batch capabilities as well as ID verification, all in a cross-channel, cross-line-of-business environment for the retail bank."

Fair Isaac and IBM believe that an enterprise fraud management solution requires the ability to leverage a common platform that uses an organization's best existing technologies and investments, and extends those investments with a comprehensive set of fraud management capabilities. Maintaining separate systems for regulatory reporting and prevention is increasingly inefficient and expensive.

"The rapid spread of fraud across the retail bank that begins when criminals use one banking product to access a customer's total banking relationship is a service, security and profitability dilemma," said Diane Bartlett, banking executive in IBM's Business Consulting Services Division. "The combination of the analytic, data-driven platform in Falcon One with IBM's Business Consulting Services Risk and Compliance Practice provides the agility needed to react when fraud crosses the retail bank."

IBM Business Consulting Services has deep operational and organizational change skills which support the successful implementation of the Fair Isaac Falcon One solution. IBM links industry-oriented business strategy and process consulting with systems integration capabilities to deliver end-to-end solutions. As part of the enterprise fraud solution, Fair Isaac Fraud Consultants partner with their IBM counterparts to help clients evaluate the scope of the fraud problem, then design and implement a solution that closes the door on fraud activity in every category.

About Fair Isaac's Falcon One System

Falcon One helps financial institutions address multiple types of customer and account fraud within an organization through a configurable set of detection, case management and analytic capabilities. A unified, flexible infrastructure enables multiple fraud solutions across different channels and lines of business to work collaboratively, sharing data and system services to deliver unprecedented levels of fraud protection.

The Falcon One system leverages Fair Isaac's market-leading Falcon technology, which has been successfully used in fraud prevention, detection and resolution for more than 15 years. Fair Isaac currently offers several key solutions within the Falcon One infrastructure -- including Falcon(TM) Fraud Manager for ATM, credit card and debit card transaction fraud as well as account opening fraud, and Falcon(TM) ID for identity fraud protection -- which can be deployed individually to address a particular fraud type, or in combination to achieve an additional lift in fraud detection power.

About IBM Business Consulting Services

With consultants and professional staff in more than 160 countries globally, IBM Business Consulting Services is the world's largest consulting services organization. IBM Business Consulting Services provides clients with business process and industry expertise, and the ability to translate that expertise into integrated, adaptive, on demand business solutions that deliver bottom-line business value.

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 power 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.

Fair Isaac 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 new Falcon One product offering and the relationship described herein, 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, 2004, and quarterly report on Form 10-Q for the period ended March 31, 2005. 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 One, Falcon 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.

CONTACT: Fair Isaac Corporation
John D. Emerick, Jr., 800-213-5542 (Investors & Analysts)
investor@fairisaac.com
Brian Kane, 612-758-5232 (Media)
briankane@fairisaac.com
or
IBM Corporation
Michael Corrado, 914-642-3009
mcorrado@us.ibm.com

SOURCE: Fair Isaac Corporation