Fraud Intelligence Delivers a 30% Improved Fraud Detection Rate for the Riskiest 3% of Applications Compared to Existing Scores
LexisNexis® Risk Solutions today announced LexisNexis® Fraud Intelligence, the newest addition to the company’s suite of fraud and identity products. LexisNexis Fraud Intelligence is a non-FCRA solution that helps organizations mitigate new account fraud risk by bringing together identity events and consumer application activity to arrive at a comprehensive, powerful score that offers complete view of identity. The new tool limits friction for legitimate consumers because it can identify applications in real-time that are most likely fraudulent.
The identity verification and authentication solutions that worked for organizations in the past may not be a match for today’s more sophisticated identity fraud attacks. Risk management professionals tend to combat emerging fraud vectors by imposing more rigorous security measures. Too often, these measures have high false positive rates and any time a company makes legitimate consumers jump through hoops or delays an application approval, the company risks consumers abandoning the process.
Julie Conroy, senior analyst from Aite, stated, “Financial services firms have seen a sharp uptick in application fraud in 2020, while at the same time good prospective customers are shifting much of their behavior to digital channels. The ability to effectively differentiate good from bad in digital channels is no longer a key strategy; it is now a competitive imperative. Collaborative solutions like LexisNexis Fraud Intelligence promises to be a valuable element of the control framework.”
LexisNexis Fraud Intelligence analyzes hundreds of unique identity characteristics, identity application behaviors and identity events to provide real-time insight into application fraud risk. It detects inconsistencies and recognizes fraud patterns within application profiles that other fraud tools miss, delivering a fraud risk score, which provides an up-to-date view that predicts the likelihood an application will result in fraud should the consumer open an account. The score also serves as an indicator that a specific fraud risk requires further investigation.
Read More: Mogo Announces that MogoSpend Now Supports Apple Pay, Google Pay and Samsung Pay
Fraud Intelligence brings a new dimension to traditional fraud detection tools by offering unique insights into identity event and consumer application activity. Better intelligence can strengthen an organization’s identity fraud risk detection and investigation strategy. According to LexisNexis Risk Solutions internal analysis, Fraud Intelligence delivers a 30% improved fraud detection rate for the riskiest 3% of applications compared to legacy fraud risk scores.
The solution is currently available in three forms that target fraudulent activity within a specific industry:
- Fraud Intelligence Bankcard Score for banks/financial institutions, bankcard issuers, money service businesses and auto lenders
- Fraud Intelligence Retail Score for retail card issuers
- Fraud Intelligence Telecommunications/Wireless Score for telecommunications, wireless and utilities (including phone providers)
“LexisNexis Fraud Intelligence provides businesses with the information they need to better predict, detect and prevent the main drivers of identity fraud,” said Kimberly White, senior director of fraud and identity at LexisNexis Risk Solutions. “Less fraud means lower costs and higher profits. When companies can quickly recognize threats and manage exceptions, they can deliver a positive, seamless experience – exactly what consumers demand. This new solution takes a holistic approach to fraud prevention and offers access to shared industry fraud and identity information. Better intelligence from a cross-vertical perspective can strengthen your existing fraud prevention tools and investigative processes.”
LexisNexis Fraud Intelligence is the first product to launch as a direct result of the company’s acquisition of ID Analytics in February 2020.
Read More: SafeSend Appoints Scott Fleszar as Chief Executive Officer
