SAN DIEGO, Aug. 23 /PRNewswire/ -- Today, eHNC, the Internet Commerce division of HNC Software, Inc. (Nasdaq: HNCS), announced the formation of the Internet Fraud Prevention Advisory Council (IFPAC). Through research, industry data analysis and education, IFPAC's goal is to reduce the risk and monetary costs of Internet fraud incurred by those involved in e-commerce transactions, including consumers, online merchants, merchant acquirers (credit card processors), card associations and card issuers.

According to PricewaterhouseCoopers, fraudulent Internet and electronic commerce transactions account for half of the $32 billion annual fraud total.

"Internet fraud losses do not have to be a factor in conducting online business," said Allen Jost, vice president of Internet risk management for HNC Software. "Many consumers are reluctant to shop online and are afraid of potential fraudulent use of their credit card account. IFPAC will help everyone involved in e-commerce become as confident as they are with transactions where the credit card is present."

IFPAC charter members include:

• ebit.net, the new e-commerce risk management subsidiary of Transaction Billing Resources, the leading provider of card-not-present risk management services to the telecommunications industry.

The council will act in an advisory capacity to Internet, retail, financial and payment industries on the subjects of Internet fraud trends, techniques used to combat fraud, current business solutions, future business needs and Internet fraud services. It will also cooperate and share information with other e-commerce fraud prevention and security organizations and associations.

"Internet merchants are looking for tools to reduce the uncertainty of selling online; especially as points-of-sale become more distributed across the Web," said Joe Barrett, Vice President of Business Development of EC Direct, and IFPAC inaugural president. "IFPAC will allow merchants and credit card issuers to have access to the best possible fraud prevention data and techniques."

Internet merchants are ultimately responsible for losses due to Internet fraud, which often results in price increases for goods and services because of decreases in profits. Online merchants that consistently experience high fraud volumes may even lose the right to accept credit cards as a form of payment.

"Internet fraud hurts everyone involved in e-commerce transactions," said Jost. "Even card issuers suffer because reduced consumer confidence results in a substantially lower number of transactions and increased costs for customer service. IFPAC will be a valuable resource in the fight against Internet fraud."

The council plans to increase the knowledge of everyone involved in the e-commerce transaction stream by:

• reporting Internet fraud prevention best practices.

eHNC is contributing the technology for the eFalcon(TM) Internet Fraud Control Consortium -- a financial industry association that aggregates data specifically for identifying and preventing Internet fraud. eFalcon is the only complete Internet credit card fraud detection and management service on the market today.

"E-commerce transactions require specialized, accurate fraud detection solutions," added Jost. "The IFCC applies the same scientific risk management approach that credit card issuers have employed worldwide for more than a decade, effectively reducing fraud in more than a billion 'card present' transactions."

Online businesses that use the eFalcon service, which is sold by eHNC, automatically become council members. IFPAC invites other e-commerce companies to join the council.

About eHNC

eHNC, the Internet Commerce division of HNC Software Inc., is the first e-commerce service provider with the knowledge, experience and suite of comprehensive services to assist companies involved in e-commerce at every stage of the online buying cycle. By delivering real-time risk management solutions through simple interfaces, eHNC helps each business control transaction risk, build customer relationships and succeed in the e-commerce environment. The company builds upon a ten-year track record of real-time risk management, holds several patents on its advanced technology products, and has the largest fraud data consortium in the world. For more information, please visit http://www.ehnc.com/.

About HNC Software

Headquartered in San Diego, California, HNC Software Inc. is a leading provider of complete Predictive Customer Relationship Management solutions for service industries. HNC divisions include Financial Solutions, Retek Retail Solutions, Insurance Solutions, eHNC and Telecommunications Solutions.

NOTE: eFalcon is a registered trademark of HNC Software Inc.

SOURCE: eHNC

CO: eHNC; HNC Software, Inc.; Internet Fraud Prevention Advisory Council; EC Direct; CyberCash, Inc.; Signio; ShopNow.Com Inc.; ebit.net