Experian Announces Breakthrough Solution in the Fight Against Synthetic Identity Fraud
22 Maggio 2020 - 6:01PM
Business Wire
Industry-first fraud offering integrated into
the credit profile mitigates lender losses while protecting
millions of consumers’ identities
To combat a growing threat that’s expected to drive $48 billion
in annual online payment fraud losses by 2023,1 Experian® today
announced the launch of Sure Profile™. Experian is the first
company with an offering to combat synthetic identity fraud that is
integrated into the credit profile with market-leading assurance.
With Sure Profile, Experian is putting “skin-in-the-game” by
sharing fraud losses with the lender if the losses occur on assured
profiles.
Sure Profile validates consumer identities, detects profiles
that have an increased risk for synthetic identity fraud and helps
cover losses resulting from synthetic identity fraud for assured
profiles.
Leveraging the capabilities of the Experian Ascend Identity
Platform™, Sure Profile utilizes Experian’s industry-leading data
assets and data quality to drive advanced analytics that set a
higher level of protection for lenders. Powered by newly developed
machine learning and AI models, Sure Profile offers lenders a
streamlined approach to define and detect synthetic identities
early in the originations process.
Experian’s Sure Profile differentiates between real people and
potentially risky applicants, so lenders can confidently increase
application approvals with less risk.
“Experian can confidently define and help detect synthetic
fraud. That's why we can help stop it,” said Craig Boundy, CEO of
Experian North America. “Experian stands behind our data with
assurance given to our clients. It’s better for lenders and it’s
better for consumers.”
Experian expects to authenticate most credit applications
through Sure Profile. In the cases where the identity can’t be
assured, the company will deliver additional fraud risk indicators,
so that lenders can take the right next steps to verify the
potential borrower’s identity and prevent fraud.
Synthetic identity scope
To date, detecting synthetic identities has been a significant
challenge for lenders because there’s not an industry standard or a
single definition that can be used to establish the legitimacy of
an identity. In addition, understanding the financial impact of
synthetics has been difficult for lenders as losses tied to
synthetic identity fraud are typically categorized as defaults or
“bad debt.” With Sure Profile, Experian reinforces its position as
a leader by creating a standard set of criteria to define a
synthetic identity.
Synthetic identity fraud is the fastest growing type of
financial crime in the United States, accounting for 10%–15% of
lender losses2 each year. Experian data shows that 9%–15% of credit
card losses are due to synthetic fraud.
To create synthetic identities, fraudsters use a combination of
real and fake information, such as names and social security
numbers, to create “Frankenstein IDs,” which are used to obtain
credit. Synthetic identity fraudsters may also add the identities
they create to an existing credit account as an authorized user. In
either case, the identity is reported by the financial institution
to credit reporting agencies, creating a new record associated with
the fraudulent information. Once established, the synthetic
identity can be used to set up additional fraudulent accounts.
Sure Profile complements Experian’s already robust set of
identity protection and fraud management capabilities that address
fraud and identity challenges, including account openings, account
takeovers, e-commerce fraud and more. In 2018, Experian launched
its free Child ID Scan service and designated September 1 as Child
Identity Theft Awareness Day. In 2019, Experian was also the only
credit bureau named as one of the 10 participants in the initial
rollout of the Social Security Administration’s new electronic
Consent Based Social Security Number Verification (eCBSV)
service.
For more information on Experian’s Sure Profile, please visit:
https://www.experian.com/business-services/sure-credit-profile.
About Experian
Experian is the world’s leading global information services
company. During life’s big moments — from buying a home or a car to
sending a child to college to growing a business by connecting with
new customers — we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organizations to prevent identity fraud and crime.
We have 17,200 people operating across 44 countries, and every
day we’re investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
Experian and the Experian trademarks used herein are trademarks
or registered trademarks of Experian and its affiliates. Other
product and company names mentioned herein are the property of
their respective owners.
1
https://www.juniperresearch.com/researchstore/fintech-payments/online-payment-fraud
2
https://www.mckinsey.com/business-functions/risk/our-insights/fighting-back-against-synthetic-identity-fraud
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version on businesswire.com: https://www.businesswire.com/news/home/20200522005056/en/
Annie Russell
Experian Public Relations
1 714 830 7927
Annie.Russell@experian.com
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