IWI and JCB -Industry's First Collaboration for Cross-Sector Anti-fraud Measures

Intelligent Wave Inc.　(Head office: Chuo-ku, Tokyo; Representative Director, CEO: Kunimitsu Sato; hereinafter: IWI)　and JCB Co., Ltd. (Head Office: Minato-ku, Tokyo; Chairman and CEO: Ichiro Hamakawa; hereinafter: JCB）have established Security Consortium. IWI and JCB have signed a basic agreement to establish structure to promote industry-wide anti-fraud measures by leveraging the strengths of both IWI and JCB. 

This initiative will be gradually rolled out to credit card companies that have already installed IWI's fraud detection system, with the aim of practical application by the end of 2023.

【Background】
The losses from credit card fraud for the full year of 2021 had reached 33 billion yen*, the worst ever since statistics began in 1997, and anti-fraud measures are an immediate priority.

The Ministry of Economy, Trade and Industry (METI) of Japan has also announced the "Direction for Further Strengthening Credit Card System Security Measures (Credit Security Measures Vision 2025)" and declared that the public and private sectors will work together to strengthen security measures. The Ministry also states that it would be effective to collaborate with individual companies' fraud detection systems and share knowledge and data in order to achieve more advanced fraud detection.
*Japan Credit Association, "Incidents of Credit Card Fraud" (September 2022)

【Collaboration between IWI and JCB】
IWI has the advantage of a high installation share of fraud detection systems and FEP (front-end processor) systems for credit card companies, and JCB has the advantage of "single acquiring," in which it is responsible for all domestic merchant contracts and holds merchant information, and both companies agreed to this agreement because the partnership will provide comprehensive support from upstream to downstream of credit card payment.

The consortium will not only provide existing solutions from both companies but will also provide structure to share fraud detection rules owned by credit card companies, aiming to enhance fraud detection through the sharing of knowledge and data across the industry, something that has never been done before.

In the future, the consortium will work with the credit card companies participating in the consortium to develop and implement multifaceted and multi-layered anti-fraud measures that leverage the strengths of each company, to provide a safer and more secure payment environment for cardholders. For example, the consortium will build structure to centralize and share the fraud cases accumulated by each company, so that each participating company can promptly respond to the latest fraud patterns.

The consortium is not limited to the JCB brand but also plans to expand the structure to other international payment brands as well. The consortium will work with credit card companies to address the industry-wide issue of anti-fraud measures, regardless of card brand boundaries.

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