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Discover the Eagle Eye

D iscover Business Services, Discover Card's merchant network, will enhance the protection and services provided to their 4 million merchant locations by implementing HNC Financial Solution's Eagle Merchant Risk Management System. Discover Business Services will use Eagle to identify potential fraud problems at its merchant sites.

"We're gratified that Discover Financial Services has selected Eagle to augment its merchant portfolio management system. Their license greatly increases the number of merchants worldwide monitored by Eagle," said Michael Chiappetta, group vice president of Risk Management Solutions for HNC Financial Solutions.

Eagle uses neural networks to model typical card usage at each merchant location and provides a statistical prediction of fraudulent activity, including collusive or targeted behavior and employee deception. The risk management system is designed to:

+ protect acquirers from emerging fraud trends

+ manage risk and profitability

+ increase operational efficiency

The Discover contract comes on the heels of HNC's recent license of their Falcon card fraud detection system. "By implementing both Falcon and Eagle, Discover Card and its customers will be able to benefit from the disparate approaches to fraud detection both solutions offer, and the synergy of the systems working together to battle fraud."

Discover Financial Services, a business unit of Morgan Stanley Dean Witter & Co., operates the Discover Card brands and the Discover Business Services network for its more than 50 million card members. Discover Business Services is the largest independent credit card network in the United States, with approximately 4 million merchant and cash access locations.

HNC Financial Solutions develops intelligent customer value management software solutions for the financial services and e-commerce industries. Its suite of real-time decision platforms and predictive business solutions allow firms to automate new account decisioning, optimize marketing efforts, detect fraud, predict profitability, and manage the customer lifecycle. For more information visit www.hnc.com.